How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Max Lowry Your Own Question

Max Lowry
Max Lowry, Advocate
Category: Law
Satisfied Customers: 1457
Experience:  LLB, 10 years post qualification experience
51031577
Type Your Law Question Here...
Max Lowry is online now

Ra-ja

Customer Question

i have a claim for mis-selling against an organisation who were still trading and FSA approved at the time that i made my investments and when i made my claim. i started the claim process in July 2012 and my claim was acknowledged by the firm. However, the firm subsequently went into Administration and is now in liquidation. I understand that they had PI cover in place at the time of my claim. Do i have any claim against the PI company who were insurers for the firm concerned?
Submitted: 3 years ago.
Category: Law
Expert:  Max Lowry replied 3 years ago.

Max Lowry :

Hi, welcome to Just Answer. I will help you with your question.

Max Lowry :

Yes, you would have a claim against the PI policy, but you may not need to go down that road.

Max Lowry :

You could potentially bring a claim against the Financial Services Compensation Scheme - the website is here for your information: http://www.fscs.org.uk

Max Lowry :

They provide cover in respect of all regulated firms that go into a formal insolvency procedure.

Max Lowry :

But, if for whatever reason you couldn't use the FSCS (which is unlikely) then you would have rights against the insurer pursuant to the Third Parties (Rights Against Insurers) Act 2010.

JACUSTOMER-zu13rcxf- :

Thank-you for your advice. My issue is that my claim is for £250,000 and my understanding is that the maximum pay-out from the FSCS is only £50,000. so my preference is to only use the FSCS as a last resort. for the PI insurer first and then to refer the matter to the FSCS if this fails. Are there any risks with this approach?

Max Lowry :

OK, then yes, you're able to go against the insurer directly.

Max Lowry :

And no, no risk with that approach.

Max Lowry :

I hope this answers your question. If you need further information, just let me know. Please do remember to rate my answer as highly as you can.

JACUSTOMER-zu13rcxf- :

Does the PI insurer have a legal responsibility to reimburse me for my losses? If so, what do i need to do to prove mis-selling. I am currently having my case reviewed by the Financial Ombudsman. After 4 months of looking into my case they have indicated today that whilst they believe their is evidance of mis-selling i should nevertheless consider refering my case to the fscs because any award that the FO could make would be against the company and not the insurers of the company and may therefore be unenforceable. I do not understand this as i thought that if i could get an award against the company that their insurers would have to pay up. This is the initial opinion of the adjudicator and i do have the option to ask that my case be refered to the Ombudsman for a second opinion. What is your view and do you have any experience of somebody receiving an award by the FO against a company and then being paid out by the companies insurers?

JACUSTOMER-zu13rcxf- :

If i am forced to go down the FCSC route could i break my claim up into 5 separate claims against the company as they did sell me 5 individual products over a 18 month period. Or do i have to consolidate them into one claim? If i could do the former then i might be able to recoup the majority of my losses and not be constrained to a maximum compenstaion of £50,000

Max Lowry :

Hi

Max Lowry :

The insurer has a liability to pay you if the basis of your claim was insured by the firm.

Max Lowry :

You would need to prove the claim against the company before you can claim against the insurer - you still need to prove your claim.

Max Lowry :

However, the ombudsman is a good start to this, as he/she will effectively help you do this.

Max Lowry :

And hopefully, the insurer will just pay out when the ombudsman makes findings in your favout.

Max Lowry :

favour.

Max Lowry :

It depends on the award by the ombudsman and how he reaches his conclusion as to whether payment has to be made.

Max Lowry :

The ombudsman's findings wouldn't force the insurer to pay out - it's entitled to fight you in Court if needs be on the same grounds as the ombudsman might rule, but hopefully, it would consider the ombudsman's ruling sufficient just to pay out.

What Customers are Saying:

 
 
 
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
 
 
 

Meet The Experts:

 
 
 
  • Jo C.

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
< Last | Next >
  • http://ww2.justanswer.com/uploads/EM/emus/2015-7-7_192327_bigstockportraitofconfidentfemale.64x64.jpg Jo C.'s Avatar

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
  • http://ww2.justanswer.com/uploads/BE/benjones/2015-12-1_0437_ennew.64x64.jpg Ben Jones's Avatar

    Ben Jones

    UK Lawyer

    Satisfied Customers:

    11553
    Qualified Solicitor - Please start your question with 'For Ben Jones'
  • http://ww2.justanswer.com/uploads/BU/Buachaill/2012-5-25_211156_barrister5.64x64.jpg Buachaill's Avatar

    Buachaill

    Barrister

    Satisfied Customers:

    1754
    Barrister 17 years experience
  • http://ww2.justanswer.com/uploads/JO/jojobi/2013-3-19_0265_maxlowryphoto.64x64.jpg Max Lowry's Avatar

    Max Lowry

    Advocate

    Satisfied Customers:

    894
    LLB, 10 years post qualification experience
  • http://ww2.justanswer.com/uploads/UK/UKLawyer/2012-4-12_9849_F2.64x64.jpg UK_Lawyer's Avatar

    UK_Lawyer

    Solicitor

    Satisfied Customers:

    750
    I am a qualified solicitor and an expert in UK law.
  • http://ww2.justanswer.com/uploads/KA/Kasare/kasare.64x64.jpg Kasare's Avatar

    Kasare

    Solicitor

    Satisfied Customers:

    402
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
  • http://ww2.justanswer.com/uploads/OS/osh/2015-7-7_19268_gettyimagesb.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    8199
    LL.B (Hons), Higher Prof. Dip. Law & Practice