View more on these topics

LSL sets aside £17.3m to cover valuation claims

LSL Property Services has been forced to set aside £17.3m to cover legal claims against its valuation services, resulting in a pre-tax loss of £7.9m for the first half of the year.

In its interim results, published this week, the property services group says it set the money aside after lenders filed claims from between 2004 and 2008 that LSL believed to be dormant.

The provision has resulted in LSL’s pre-tax profits falling from £6.5m in the first six months of last year to a pre-tax loss of £7.9m in the first half of this year.

LSL non-executive chairman Roger Matthews says: “This is a disappointing development and reflects a deterioration in claims experience resulting from certain lenders using solicitors on a ‘no win, no fee’ basis and pursuing claims we previously considered dormant.”

LSL expects the provision to impact the business over the next three years, but says this will be offset partly by the disposal of freehold properties currently held on its balance sheet, which it expects to raise around £9m after tax over the next two years.

London & Country associate director of communications David Hollingworth says: “Lenders will continue to pursue claims against valuations. I think we will see more of this happening.”



Cameron says Osborne is staying as chancellor

Prime minister David Cameron says chancellor George Osborne will still be in the role at the next election following calls for him to be replaced. Office for National Statistics figures showing a 0.7 per cent drop in gross domestic product in Q2, 2012, the third consecutive quarter of falls, has led many to question Osborne’s […]


Lloyds considers asset swap with Scottish Widows

Lloyds Banking Group is reportedly holding talks with the FSA over plans to boost funding by swapping illiquid assets for assets held by Scottish Widows. Sources have told Reuters Lloyds is planning a liquidity swap which would see the bank borrow higher quality bonds from Scottish Widows with less liquid assets used as collateral, with […]

FSA bans and fines IFA £10,500

The FSA has banned an IFA and fined him £10,500 for misleading clients and failing to have the necessary competence to provide financial advice. Adrian Mosley, sole director of West Yorkshire-based firm Mosley & Company, has been banned from holding a significant influence function or acting as a sole trader. The FSA found Mosley made […]

AFH Financial Group secures £660k to fund acquisitions

IFA firm AFH Financial Group has raised around £660,000 to fund potential acquisitions. The firm’s most recent acquisition was a £725,000 deal for Cheltenham-based IFA firm Specialist Solutions, which was fined £35,000 by the FSA in April 2011 for promoting unregulated collective investment schemes to clients without properly assessing suitability. The acquisition was the firm’s […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm