AWD Chase de Vere has agreed to pay full compensation to a Sipp client that it advised to invest £200,000 in Lifemark through Keydata.
AWD invested 86 per cent of the client’s £230,000 pension fund into Keydata and its professional indemnity insurer is set to make a full payout, Money Marketing understands.
The firm upheld a complaint from the client last September although at first it did not offer to pay full compensation as Lifemark’s life settlement portfolios were still running, albeit with liquidity issues.
On November 30, the Financial Services Compensation Scheme said it was considering Lifemark to have no value left for the purposes of calculating compensation, leading AWD Chase de Vere to conclude that a full payout was needed.
An AWD spokesman says: “We take any complaints very seriously and if we feel that there are any cases where there is detriment to the client because we have previously given unsuitable advice, then we will ensure that the client is fully recompensed.”