Investors who have received compensation after taking a complaint to the Financial Ombudsman Service (FOS) could now be free to seek further redress, following a surprise court ruling.
The High Court in London has given permission for a couple awarded the maximum compensation through the FOS to sue the adviser at the centre of their complaint.
The decision overturns a 2010 judgment that made the acceptance of an FOS award the final action that could be taken, meaning investors could not then pursue their adviser for further compensation.
Investors Barry and Julie Clark are now free to sue their IFA for the £500,000 they believe they lost when they were mis-sold an endowment policy. The judge, Ross Cranston, said the FOS award should not be the end of a claimant’s bid to secure redress, opening the way for further claims against advisers.