Advisers predict pensions victory

A legal bid by independent financial advisers to scupper new compensation guidelines for pension transfer victims reaches its climax today, but the IFA trade body was claiming victory last night.

Garry Heath, chief executive of the IFA Association, said yesterday he was "quietly confident" a judicial review of the rules would vindicate his organisation's opposition to them.

The High Court will deliver its judgement today on the guidelines, set by the Securities and Investments Board, the City's top financial watchdog.

A judgement in favour of the IFAA will delay for many months compensation for up to 1.5 million people who may be entitled.

A reversal for SIB would spark action against insurers, as trade unions and solicitors acting for many claimants go to court to obtain redress.

The GMB union said yesterday it was planning to issue a series of writs on behalf of hundreds of members it claimed had been wrongly advised to opt out of their company pension schemes and into private ones.

Mr Heath said: "I have not been given a preview of the judgement, but anyone who sat in the High Court during the hearings last month could not have come away with any other impression."

His comments came as evidence emerged of the scale of support by large insurance companies for the IFAA's legal battle against the SIB.

Mr Heath said insurers were funding two thirds of IFAA's £300,000 legal bill. Donations of up to £30,000 have been made, although he declined to name any companies.

"There are many life companies which see the guidelines the same way we do. We have received several large cheques from those who agree with us."

The judicial review, initiated by the IFAA, centres on its opposition to a requirement that independent advisers contact their clients and inform them they may have been wrongly advised to transfer out of company pension schemes.

Finding and then compensating the victims could cost the insurance industry up to £3bn, with IFAs potentially liable for at least a quarter of that amount.

IFAs say contacting clients will invalidate their professional indemnity insurance, which prevents them from soliciting claims against themselves.

Doing so would drive them out of business in the event of successful claims not met by PI insurers.

Mr Heath said: "We do not want to delay any rightful compensation for those who have been wrongly advised. If we win, we will immediately put forward a series of alternatives that the SIB can take up."

A SIB spokeswoman said it was unable to discuss the case against it until the outcome of the judicial review was known.

News
peoplePaper attempts to defend itself
Voices
voicesWe desperately need men to be feminists too
Life and Style
food + drink
Arts and Entertainment
British actor Idris Elba is also a DJ and rapper who played Ibiza last summer
film
PROMOTED VIDEO
News
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

IT Project manager - Web E-commerce

£65000 Per Annum Benefits + bonus: Clearwater People Solutions Ltd: If you are...

Trainee / Experienced Recruitment Consultants

£20000 - £25000 per annum + OTE £40,000: SThree: SThree are a global FTSE 250 ...

Trainee Recruitment Consultant - Soho

£20000 - £25000 per annum + OTE £40000: SThree: As a Recruitment Consultant, y...

Trainee Recruitment Consultants - Banking & Finance

£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...

Day In a Page

Secret politics of the weekly shop

The politics of the weekly shop

New app reveals political leanings of food companies
Beam me up, Scottie!

Beam me up, Scottie!

Celebrity Trekkies from Alex Salmond to Barack Obama
Beware Wet Paint: The ICA's latest ambitious exhibition

Beware Wet Paint

The ICA's latest ambitious exhibition
Pink Floyd have produced some of rock's greatest ever album covers

Pink Floyd have produced some of rock's greatest ever album covers

Can 'The Endless River' carry on the tradition?
Sanctuary for the suicidal

Sanctuary for the suicidal

One mother's story of how London charity Maytree helped her son with his depression
A roller-coaster tale from the 'voice of a generation'

Not That Kind of Girl:

A roller-coaster tale from 'voice of a generation' Lena Dunham
London is not bedlam or a cradle of vice. In fact it, as much as anywhere, deserves independence

London is not bedlam or a cradle of vice

In fact it, as much as anywhere, deserves independence
Vivienne Westwood 'didn’t want' relationship with Malcolm McLaren

Vivienne Westwood 'didn’t want' relationship with McLaren

Designer 'felt pressured' into going out with Sex Pistols manager
Jourdan Dunn: Model mother

Model mother

Jordan Dunn became one of the best-paid models in the world
Apple still coolest brand – despite U2 PR disaster

Apple still the coolest brand

Despite PR disaster of free U2 album
Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits