Time running out for Indie creditors

Independent Insurance's creditors have been warned that they will soon run out of time to join a class action against those involved in the insurer's collapse.

The warning came as the Creditors of Independent Insurance Group (CIIG) prepared to take action against the Financial Services Authority (FSA).

At a CIIG meeting on Tuesday, Class Law partner Stephen Alexander said the FSA was the first body the group would pursue for damages.

Alexander said the group would issue an application to the High Court for a group litigation order.

Such an order would give all creditors a limited amount of time to sign up to the group action, or lose their right to bring any further claims.

CIIG chairman Kevin Young agreed it was time "fence-sitters" decided if they supported the class action.

Alexander said the CIIG would also make an application for a pre-action disclosure, which would force the FSA to release all its documents related to the case.

"These steps will allow us to take the case to another level before we make the final decision to proceed with legal action," he said.

Meanwhile, a rift appeared between the CIIG and Independent's liquidators PricewaterhouseCoopers (PWC).

Their relations had been frosty, with earlier accusations from Alexander that PWC had refused to release documents that would assist with the class action.

But Alexander told the meeting that he had had a productive meeting with PWC's lawyers Herbert Smith and would meet the senior liquidators next week.

He said PWC would assist, and possibly join, the CIIG in taking action against Independent's actuaries Watson Wyatt and auditors KPMG.

Alexander said statements he had obtained from Independent's directors alleged that the actuaries and auditors spoke only to former Independent chief executive Michael Bright and conducted no investigations or meetings with staff or managers.

However, a PWC spokeswoman said the firm "wouldn't be pushed by any third party into deciding who we will or won't sue".

"We have no intention of taking any action at this point."

The spokeswoman said the CIIG had never requested specific documents from PWC.

At the meeting, Alexander said he would sent a report to all CIIG members after he had spoken to the liquidators.

The report would contain a template letter for creditors to send to their MPs, urging them to table parlimentary questions on the FSA's role in Independent's collapse.