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 Â£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.”