Knight investors have 'valid claim'

Investors who lost money with crashed financial adviser Knight Williams are entitled to claim millions of pounds in compensation, believes City firm Dibb Lupton Broomhead.

The firm, which is offering advice to the Knight Williams Action Group free of charge, has compiled a report which concludes investors have a valid legal claim for breach of statutory duty.

The report is designed to put pressure on the Investors Compensation Scheme to pay claims which could top £8 million.

Dibbs has been representing investors for the last year.

People who invested money through Knight Williams, many of whom were elderly, claim that they were given bad advice. This has been denied by the directors of the firm, which has been in liquidation since last summer.

Dibbs litigation partner Neil Micklethwaite said the firm's report should help claimants win their case.

“I would be shocked if the ICS did not act on behalf of investors,” he said.

“This case has been going on for several years, which is far too long.”

For the moment, the Dibbs report will go to Knight Williams' liquidator, Arthur Andersen, which will decide whether to admit the claims and pave the way for an interim payout by drawing on the failed firm's assets.

An ICS meeting on the issue is due next month.