The civil liability route
Most pension claims resolve through the firm's complaint process (Route 1), the Financial Ombudsman Service (Route 2) or the FSCS (Route 3). Civil action through the courts is a separate path used where the regulated channels are unsuitable — typically because the firm refuses to engage, the loss exceeds the regulator's compensation cap, or the facts call for disclosure and cross-examination that only a court can provide.
Civil claims are conducted by an SRA-authorised legal partner. Redress Advisory provides the platform and case-management spine; it does not provide legal advice and it does not hold client money. Any damages or settlement are paid into the law firm's client account in accordance with SRA Accounts Rules — never to Redress Advisory.
When civil action is appropriate
- The firm refuses to engage. If a still-trading firm declines to handle the complaint within DISP timescales and the FOS route is unsuitable for the specific facts, civil proceedings may be the only way to obtain a binding outcome.
- The loss exceeds regulator caps. FOS binding awards and FSCS protection are both capped. Where the underlying loss is materially higher and a solvent defendant exists, a civil claim may recover the balance.
- Third parties are involved. Where liability may sit with parties outside the direct adviser relationship (introducers, SIPP operators, professional trustees), the courts can join multiple defendants in a way regulated forums cannot.
- Disclosure is needed. Civil procedure provides formal disclosure and witness evidence — sometimes essential to prove what was said, recommended or omitted at the point of advice.
What to expect
- Pre-action conduct. Your legal partner will follow the relevant Pre-Action Protocol — typically a Letter of Claim, response window, and attempts at alternative dispute resolution before issuing.
- Funding & costs. Civil claims carry costs risk. Your legal partner will discuss the funding options available for your case (CFA / DBA / private retainer / ATE insurance) and explain the risks before any proceedings are issued. Redress Advisory does not fund litigation and does not take a share of damages.
- Timelines. Civil claims typically take 12–24 months from issue to trial, although the majority settle before then. Your legal partner will keep you updated at each stage.
- Limitation. The Limitation Act 1980 generally imposes a 6-year time limit (with extensions under s.14A for latent damage). Your legal partner will assess limitation at the outset.
- You stay in control. Settlement offers, the decision to issue, and the decision to discontinue all remain yours.
How this route fits with the others
Routes 1 (complaint to the firm), 2 (FOS) and 3 (FSCS) are free or low-cost to the consumer and resolve the great majority of cases. Civil action is reserved for the cases where those channels cannot deliver a fair outcome. Your legal partner will advise on the right route — and may sometimes recommend running channels in parallel where appropriate.