Financial Services Compensation Scheme

gb652

I was declared bankrupt in July 2015. This came about as a result of taking some bad financial advice including the moving of pension funds from one scheme to another. A few months before my bankruptcy I joined a joint action to claim against the invedtment/pension company.

I fully cooperated with the Official Receiver and told them about the joint action which was being co-ordinated by a law firm who also corresponded with the OR to confirm it.

My bankruptcy was discharged in July 2016.

Approximately 15 months ago I was advised that the joint court action had failed (subject to appeal).

However the law company then made a new claim to the Financial Services Compensation Scheme in regards to the bad advice ide received. This has been accepted by the FSCS. 

I have now been advised that before compensation is paid out they have written to the OR to ascertain if they still have any interest in my situation. To me this seems unfair on the basis that this was from over 6 years ago when the action originally started (and failed) and the FSCS claim is a separate issue.

Can anyone advise of the likely outcome with the OR? Are they likely to claim any pay out and if they do is there an appeal mechanism against this taking place?

Also what formula does the FSCS use to decide on what the value of the compensation payment will be? The investment into the fund was 62k by me.

Hope someone can assist? 

molerat

As the cause of the action is pre bankruptcy then the OR does have an interest in any outcome.

Minkym00

What you’re describing is what is known in the OR world as a “right of action”. As you informed your OR of this at the time, the key point here is what your OR’s position when they were originally made aware of it. The OR would have asked your solicitors for details of the class action and then ascertained whether any successful claim would be claimed as an asset in bankruptcy. For your answer, check with the solicitors what was the response from the OR at the time. If the solicitors received a response that it would be claimed by the OR then they should have let you know, as it’s pretty likely you would not have bothered continuing with the claim. If they went ahead knowing it would be claimed (and you could be liable for their costs) then I would be having words with the solicitor...