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Review of FSAVCs may see advisers facing flood of claims

The FSA&#39s review of FSAVCs could open the floodgates for claims against

independent advisers.

The fears come after the review, announced this week, emphasised it would

have to review all cases that investors request in addition to those in

some specified categories.

Firms will also have to review sales made between April 29, 1988 and

August 15, 1999. The FSA says investors should be invited to request a

review if they belong to matched contribution schemes or subsidised schemes

offering other sub- sidised benefits.

The Pension Advisers Support System manager Derek Warner says the plans

have left the review “rather wide open” although it was meant to be a

limited review affecting several thousand cases.

Warner says: “The finalised plans are along the lines of the original

proposals and an improvement on the consultation paper. We hope to engage

with IFAs at the start of the review.”

Aifa says IFAs face an uphill struggle to comp-lete the review unless they

have records dating back to 1988.

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