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Chase de Vere confirms FSCS Keydata settlement

Advice firm has reached an out-of-court settlement with no admission of liability

Chase de Vere has settled with the Financial Services Compensation Scheme in its long-running legal battle over Keydata advice.

Money Marketing revealed last week a settlement was imminent.

Chase de Vere was one of six lead defendants selected by the FSCS last year in its long-running battle to recoup up to £75m out of around £400m paid out in Keydata compensation. It is thought Chase de Vere was among the firms with the largest Keydata claims against it. 

In December, the FSCS reached settlements with all of the lead defendants apart from Chase de Vere.

In July 2012, Chase de Vere said in its 2011 accounts that the FSCS had “substantially reduced” its original £64.5m claim against the company in relation to Keydata sales. 

The advice firm declined to comment on what level of discount, if any, it has secured. In a statement, Chase de Vere says:  “Chase de Vere and the FSCS have reached an out of court settlement, with no admission of liability, in relation to the sale of Keydata investment products, the terms of which are confidential.”

An FSCS spokeswoman says: “The FSCS is committed to pursuing recoveries where it is reasonably possible and cost effective to do so. This delivers significant benefits for levy payers and helps to offset the costs of compensation. We are committed to pursuing defendants in the Keydata proceedings. To determine whether a defendant should be a lead case defendant, the court is likely to consider whether the defendant has sufficient means to fund the defence costs of the proceedings.”

A case management conference was held last week to request new lead case defendant criteria, which could see uninsured firms without legal representation chosen as lead cases where they have claims worth over £150,000.

Money Marketing understands there are 74 firms in the pool with claims worth more than £150,000.

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