The paper's aim is to report and comment on two preliminary issues that arose from claims being pursued by the Financial Services Compensation Scheme (FSCS) against Abbey National Treasury Services (ANTS) and NDF Administration Ltd (NDF).
The paper outlines the facts and explains the decision.
The FSCS commenced action against ANTS as assignee of the assigned claims and alleged that ANTS had collaborated with NDF in product development and promotion of the Structured Capital at Risk Products and was liable in negligence and misrepresentation to the investors whose claims it held as assignee. Having considered the arguments, the Judge concluded that FSA did have power to make rules enabling FSCS to take assignment of investor claims.
The issues in this case go to the heart of the funding mechanism of the FSCS. The financing of such compensation schemes is a perennially controversial issue in every jurisdiction that has them.
