Chase de Vere parent company Swiss Life Select has reached a settlement with Austrian consumer association VKI to pay €11m (£9.5m) for claims relating to misleading advice.
VKI had been pursuing the insurer’s Swiss Life Select arm through civil legal proceedings known as “collective actions” which had been pending in Austria for a number of years.
After the deduction of associated costs including payment to the company which financed legal proceedings, FORIS, around €7m will be paid to investors.
Swiss Life says the settlement amount was based on “specific investor characteristics and social aspects”.
VKI head Dr. Josef Kubitschek says: “We are very content with this outcome as it is quick and it allows VKI to pay out 30 per cent of the differential damage to the consumers. We have also concluded that Swiss Life Select, with its current flat hierarchical structure, is no longer comparable with the former multi-level marketing sales structur