View more on these topics

Chase de Vere posts £11m loss as Keydata legal costs take toll

UK-Currency-Money-Pound-GBP-700x450.jpg

National IFA Chase de Vere made an £11.2m pre-tax loss for 2012 after setting aside £14.4m to cover the costs of its Keydata legal battle and compensating clients sold Arch cru and payment protection insurance.

Its accounts for the year to 31 December, published today, show Chase de Vere incurred exceptional costs totalling £14.4m last year, including £700,000 for Arch cru redress, £300,000 for PPI compensation, and £600,000 for the firm’s FSCS levy for 2012/13.

The company is also involved in a review, started by the FSA in 2011, relating to “certain regulatory matters”. Chase de Vere declined to explain the nature of the review but has seen fit to reference it as part of the firm’s potential future liabilities.

Chase de Vere is expected to be named one of the lead defendants in the FSCS’ legal case to recoup compensation paid to investors from advisers who recommended Keydata.

The extent of the legal costs and the uncertainty over the case’s outcome has seen Chase de Vere secure a letter of support from parent company Swiss Life to vouch that the company has enough funding to continue to operate.

The £300,000 set aside for PPI redress relates to liabilities inherited from a business that used to be part of Chase de Vere, but has since been sold on.

Chase de Vere made a pre-tax profit of £1.3m in 2011 and recorded exceptional costs of £2.1m.

Chase de Vere chief executive Stephen Kavanagh says: “We have previously acknowledged the impact which some legacy issues could have on our short-term profitability. In line with this we made a provision in 2012 to provide for a number of such legacy issues and associated legal costs.

“We believe our company is incredibly well positioned to be successful.”

Recommended

1

Gross’ Pimco Total Return sees $9.9bn outflows as investors flee bonds

Bill Gross’ Pimco Total Return fund was hit by a record $9.9bn (£6.5bn) in outflows last month as investors panicked over how the Federal Reserve’s eventual tapering of quantitative easing would affect the bond market. The fund, which is the largest in the world with assets under management of $268bn, has suffered during the heavy […]

2

Govt warns Labour review proposals would delay state pension reforms

The Government has rejected calls for a series of reviews into the impact of the new single tier state pension, warning further in-depth analysis would see implementation of the reforms delayed. Under plans outlined in January this year, the Government will replace the current means-tested system with a single-tier state pension for future retirees from […]

1

David Cameron wants to keep pensions triple lock

Prime minister David Cameron is reportedly determined to keep the triple lock guarantee on pensions despite research showing it could ultimately cost five times more than expected. The Times reports Cameron is fighting to keep the policy in the same way he has retained universal winter fuel allowance and other pensioner benefits. The triple lock […]

1

Ascentric outsources back office tech to Bravura

Royal London-owned wrap Ascentric has signed a deal to outsource its back office technology to software provider Bravura Solutions. The deal sees Bravura provide back office technology across the Ascentric platform and its white-label offering, Independent Funds Direct Limited. Ascentric managing director Hugo Thorman said in November the firm was looking at outsourcing its back […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com