The policyholder had been recommended by the IFA to transfer his pension policies into 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 many years of correspondence between the parties’ solicitors, correspondence that did not even begin to resolve the dispute as the parties had formed entrenched positions.
Unless settlement could be reached legal proceedings would be inevitable.
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 discussed and resolved which led to a settlement of the claim without recourse to the courts.