The policyholder had been recommended by the IFA to transfer his existing pension policy to an unsuitable “structured” product. During the economic downturn of 2008, the structured product became worthless.
The policyholder made a claim against the IFA and there followed years of correspondence between the parties’ solicitors, correspondence that did not even begin to resolve the dispute, the parties’ solicitors having formed fairly entrenched positions.
Unless settlement could be reached, it would have been necessary for the policyholder to issue proceedings since the six year limitation period for his claim was about to expire.
In an attempt to avoid this litigation, a mediation took place during which a number of the arguments that had been advanced and rebuffed in correspondence between the parties’ solicitors were resolved and this led to a settlement of the claim without recourse to the courts.