Compensation won by couple against building society

The building society Norwich & Peterborough has been ordered to pay a couple 28,000 in compensation after they sold them a policy from a troubled investment firm, known as Keydata. The decision for the compensation to be paid was recently announced by the Financial Ombudsman Service (FOS). The investment firm Keydata entered administration last year and the majority of the 450m invested by 30,000 investors is now understood to be at risk. The clients of Norwich & Peterborough an elderly couple from Suffolk must be repaid after they recommended to purchase four Keydata policies in 2007. The ruling made by the FOS state that the couple were wrongly advised to invest more than 40% of their savings in the investments, these polices were second hand life insurance policies from the US. The FOS also stated that the investment provided a risky investment which was not suitable and sold to them on false promise. A spokesperson for the FOS states, The funds underlying mixture of assets exposes the clients capital to a greater degree of risk than they were likely to willing to accept. This decision which has been is only a preliminary one and the building society plans to return to the FOS to argue that the policies were not inherently risky. This decision made by the FOS may open the floor up for more customers of the building society to pursue claims after they also purchased Keydata policies. One lawyer has stated that he already has 250 other clients who are currently putting together their claims against the building society following Keydata entering administration, the lawyer stated he believes that these claims will be successful.