Aifa is sending out a newsletter to its members giving the Investors'
Compensation Scheme's explanation for taking the unprecedented step of
assisting Towry Law over its pension misselling black hole.
The move comes as ProAct Legal launches a legal challenge against the ICS
which has taken responsibility for £30m of Towry's £48m liability
to let its AMP deal go ahead.
In the newsletter, the ICS claims the deal is in the interests of levy
payers and claimants and it did not offer the deal but responded to a
proposal it received.
It denies agreeing to the arrangement just because big players were involved.
ProAct Legal's No Way ICS campaign for a judicial review is under way
after it received calls from over 100 disgruntled IFAs seeking advice.
ProAct Legal is asking IFAs to contribute to an industrywide fighting fund.
It is also considering asking IFAs to pay their ICS levies into its client
account until a more detailed explanation of the deal is given.
ProAct Legal partner Gareth Fatchett says: “We are ready to look at the
legal avenues to get the whole matter reviewed. What is crucial now is that
all advising firms who feel strongly must contact us.”
An ICS spokeswoman says: “What the ICS has done is within its rules.”