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£6M in Keydata claims put IFA firm on brink

Bath IFA firm Target Financial Management is on the brink of collapse after the Financial Services Compensation Scheme pursued it for £6m worth of Keydata claims.

TFM, which has 28 employees, is part of the Target Chartered Accountants group, which has around 197 staff.

TCA subsidiaries Target Consulting Group and Target Consulting entered administration on November 25 and TFM is expected to enter administration imminently.

Administrators have not yet been appointed for Target Chartered Accountants, which is based in London.

In October, law firm Herbert Smith wrote to 537 Keydata distributors on behalf of the FSCS to start the legal process of pursuing recoveries to recoup compensation paid to Keydata claimants. The FSCS says it has received 5,200 claims from investors so far and has paid out £67m in compensation.

In January, the FSCS imposed a £326m interim levy on the industry, mainly to cover the costs after Keydata collapsed. Advisers paid £93m, while fund firms paid £233m.

TCA declined to comment.

Churchouse Financial Planning director Keith Churchouse says: “More companies will go into administration as a result of Keydata. The irony is the companies that did not get involved with Keydata are the ones that will have to carry the can.”

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  1. As no immediate action is required of those on the list who are still trading AND should have PI insurance I wonder how firms can so quickly say they are on the brink.

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