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Law firm challenges &#39flawed&#39 pension review

City law firm Halliwell Landau is aiming to drum up IFA support to challenge the PIA&#39s right to carry out the pension misselling review.

The law firm claims the regulator does not have the authority to judge advice occurring before it was created in 1994.

It says the PIA was applying regulations which did not exist until 1994 to advice which was given before then, and so therefore the review is “fundamentally flawed”.

It is representing one IFA firm, which wants to remain anonymous, and is calling on others to contact it to lessen the cost of the challenge.

Pension partner Louise Curd argues that before the PIA, IFAs were not allowed to advise on occupational pensions under Fimbra rules and so are not guilty of misselling.

However, the FSA says the pension review has been subject to judicial review twice and both times it has been allowed to proceed.

It says even though specific rules were not in place, the general principle of best advice has existed since 1988, and it is on this that the pension review is based.

Curd says: “We believe this is fundamentally flawed. It is also potentially very wide reaching as it may have an impact on all IFAs affected by the ongoing review of personal pensions sold in the early 1990s.”

Former regulator, LIA director of public affairs John Ellis says: “I suspect they will find it is not as easy as they think. They are probably wasting their time and money.”

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