The Financial Ombudsman Service (FOS) has thrown out a test case brought by an IFA who argued charges levied on Keydata investors following a change of custodian to their assets were "excessive" and "grossly unfair".
Lowes Financial Management managing director Ian Lowes complained to the FOS on behalf of a client who he believed was charged unfairly for the administration of her assets in the wake of a series of firm failures linked to the £300m collapse of Keydata. After Keydata entered administration in 2009, first the custodian for the Keydata structured product held by Lowes' client and many others, Pritchard Stockbrokers, and then the product's manager Merchant Capital both subsequently failed. Related reading: From Keydata to Reyker: Clients continue to pay the price Lowes argued the...
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