View more on these topics

Kafka’s trial as IFA ‘ostrich’ fights FSA

A High Court judge branded FSA rules “almost Kafka-esque” as the regulator sought compensation from an IFA this week.

Mr Justice Peter Smith made the reference after learning how IFA Bill Matthews could not get authorisation because his partnership dissolved when his wife Patricia left because of a compensation dispute with the FSA.

Matthews, a partner of Derby-based William’s Life Pension Mortgage & Insurance Services, is fighting two compensation claims believed to be around £200,000, made by clients who transferred out of the Mineworkers’ Pension Scheme to a personal plan.

After the pension review, Matthews disputed redress awarded by the PIA Ombudsman because he had no professional indemnity cover.

At a hearing in the High Court in London on Tuesday, Matthews, who is presenting his own case, accused the FSA of driving him out of business and described how fighting the claims made him ill.

But the judge accused him of dodging the issue for four years, saying he had made matters worse. He advised him to submit a statement of means and strike a deal with the Fsa.

David Mayhew, for the FSA, said: “The authority does not accept it has put him out of business. The firm dissolved when Mrs Matthews left. Mr Matthews was informed that if he wanted to be a sole trader he would have to reapply, which he was unlikely to get because of the disputes.”

Mr Justice Smith said: “It is almost Kafka-esque. I think you, Matthews, have been a bit like an ostrich with this, dodging the issue for four years. It has just got worse.”

Recommended

Cruising for a bruising

Equity-release demand is growing from people looking to spend the proceeds on luxury items such as round-the-world cruises but there could be a sinking feeling for advisers who fail to recognise the risks.

Breene break

Mod legend Paul Weller recently organised his daughter’s birthday bash and his guitar technician recommended punk band Breene to play at the party. The band’s lead vocalist is Eddy O’Dwyer, whose day job is business support co-ordinator with Skipton Financial Services. The Diary wonders whether Breene did a cover of Weller’s ode to financial services, […]

No relation

Further to the article on Square Mile Wealth on October 14, can I just confirm that there is no actual introducer relationship between Hamptons International Mortgages and Charles Cameron.Kevin DuffyManaging director,Hamptons International Mortgages, London

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment