Ex England Manager Sven 10 Million IFA Claim

Ex England Manager Sven 10 Million IFA Claim.

Reports are appearing in national newspapers and online that ex-England football team manager, Sven Goran Eriksson has suffered £10m of financial losses as a result of negligent advice by a financial adviser.

Various schemes involved property and land investments in both the UK and overseas which have since made substantial losses.

Comment
There is a regulatory procedure to be followed regarding complaints and compensation.

The Financial Ombudsman Service can make awards up to £150,000, so this alleged claim would fall outside their remit and no doubt the claim will end on court.

From a Professional Indemnity insurance perspective, most advisers are covered for claims up to around £5m, so depending upon the court's findings and the advisers actual cover, we can only see this ending in disappointment for all.

If any adviser then goes into liquidation following claims, the Financial Services Compensation scheme then also comes into play, but the cover is only up to £50,000 per person per adviser firm.

This could be quite a high profile claim and will no doubt raise awareness on the real protection limits people have with pensions, investments, bank deposits and advisers.

A summary of the FSCS limits is as follows:

• Bank Deposits: £85,000 per person per firm
• Investment Firms (including advisers): £50,000 per person per firm
• Home Finance (e.g. mortgages): £50,000 per person per firm
• Insurance Business: unlimited up to 90% of the claim with no upper limit.
• Compulsory insurance (motor insurance and employers liability etc) is 100% per person per firm
• General insurance (house, offices etc): unlimited up to 90% of the claim with no upper limit.