Just 10 active firms remain in the Financial Services Compensation Scheme’s legal battle with advisers, after it reached settlements with all 15 lead defendants.
In a statement on Keydata recoveries published today, the FSCS reveals it has recovered £52.4m from the proceedings against advisers, less £15.8m spent on legal costs. In total, it has recovered a net figure of £102.2m.
The FSCS selected 15 new lead case defendants in October after settling with its six original lead defendants.
But it says it has now settled with all of the lead defendants.
From an initial pool of 820 firms, the FSCS has resolved its claims against all but 10 of the active defendants. In November, there were 63 active defendants remaining.
A case management conference is due to be held in March and the FSCS says it will await further directions from the court as to how the remainder of the proceedings should be managed.
National law firm DWF partner Harriet Quiney says: “It is going to become an increasingly less cost effective exercise to pursue this case. But the FSCS will not necessarily drop it, because if it did all the advisers it has settled with would feel betrayed and it would create negative publicity.”
The long-running saga between the FSCS and Keydata advisers originally required lead defendants to have insurance and legal representation.
But following a large number of settlements, in May the FSCS’s lawyers invited the court to make the following orders: that each defendant with claims worth over £150,000 be a potential lead defendant, and to remove the requirement that lead defendants have insurance and legal representation.
In July, the criteria was further widened to those with claims of between £100,000 and £150,000 against them.