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Financial Ombudsman - limitation |
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The normal limitation periods that apply in claims for poor investment advice
are set out in the Limitation Act 1980. Generally, there is a standard
limitation period of six years. However, the period can run beyond that time
because there is also a limitation period of three years in negligence claims,
from the time when the claimant knew there was a loss that was attributable
to the defendant’s fault (although that will always be subject to the 15-year
long-stop provision).
Interestingly, it seems that claims to the Financial Ombudsman are not
subject to the 15-year long-stop time period. It therefore follows, that a timebarred
complainant may be able to pursue a claim via the Ombudsman, but
not via the courts (and, given the ongoing debate about financial misselling,
such old claims are by no means unlikely). Having said that, there are
arguments that can be raised as to whether the absence of the 15-year longstop
period is compatible with the primary legislation (LA 1980). Accordingly,
any such claim may well result in judicial review application as to whether or
not the Ombudsman is able to entertain cases that are more than 15 years
old. Source: TLT Solicitors.
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June 2006 |
