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IFA sues Burns Anderson for £200k in PI row

Burns Anderson is being sued for £200,000 by an IFA looking to recover pension misselling costs in a case that could trigger claims against the network worth up to £1.9m.

Sheffield-based IFA Knowles Warwick Fin-ancial Services is claiming that Burns Anderson app-lied professional indemnity excesses to every claim against the company but that the network was only entitled to charge one excess per firm under the terms of its insurance policy.

At the same time, a number of other Burns Anderson companies are asking the court to consider their claims which total £1.9m.

Papers seen by Money Marketing reveal that the firm is arguing that Burns Anderson failed to notify it and other IFAs that it changed its PI insurance from excesses on a per firm to a per case basis in 1994.

If successful, the case could set a costly precedent for actions against a string of other high-profile networks which are understood to have similar PI arrangements.

Proact Legal partner Gareth Fatchett says: “The case fundamentally looks at the basis of what IFAs pay networks for.”

Burns Anderson chief executive Steve Kelland says: “I am surprised it has taken eight years for people to work out whether there is a claim. The law has not changed since 1994.”

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