National IFA Lighthouse chairman David Hickey says he expects to settle a law suit brought by nine IFAs who claim they are owed a total of £1m in bonuses agreed when they joined the firm.
The case is being brought in the High Court by eight RIs who still work for Lighthouse and one adviser who has now left the firm.
The claim relates to performance-related incentives that the advisers claim had been agreed when they joined the firm between 2000 and 2001.
Lighthouse says the advisers failed to meet the performance claims they made when they joined the firm. The Aim-listed firm says it expects the advisers to settle out of court for a fraction of their stated claim.
Lighthouse chairman David Hickey says: “When you have over 550 advisers, you will have disputes with some of them. These nine advisers came in saying they would write much more than the £200,000-plus average adviser turnover that the firm was achieving when it was founded. I expect that this will be settled, maybe not for nothing, but it will not be very much.”
Financial Services Legal LLP partner Gareth Fatchett says: “We cannot comment on the specifics of the case but confirm that nine advisers have issued proceedings against Lighthouse for non-payment of joining bonuses.”