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Chase de Vere profits increase as legacy compensation falls

National IFA’s bottom line benefits from a drop in historic compensation payouts

Chase de Vere chief executive Stephen Kavanagh

National IFA Chase de Vere has posted a 7 per cent increase in profits as the amount it has to pay out for legacy compensation falls.

Chase’s 2016 results show pre-tax profits are up from £5.39m to £5.76m on the back of “a continuing lower exposure to client redress in respect of legacy business”.

Gross advice revenue ticked up to £51.8m but margins dipped slightly from 44.9 per cent to 41.5 per cent.

Because the FCA’s investigation of Chase’s Keydata sales has now concluded, with the Financial Services Compensation Scheme also settling all claims around the sale of the life settlement bond-backed products, Chase says it has been able to recoup £184,000 that it set aside in provisions last year.

Chase says it has “a small number of litigation cases outstanding”, however, and principal risks to the business still come from “the level of customer complaints, litigation and compensation costs in respect of past business, although these have fallen significantly in recent years”.

Chief executive Stephen Kavanagh says the firm will focus on recruiting more top-quality financial advisers but is also eyeing acquisition opportunities.

He says: “I am incredibly optimistic about the prospects for Chase de Vere, which can prosper in an environment where independent financial advice is becoming scarcer.

“Our 2016 performance represents another year of positive progress for Chase de Vere.

“We have achieved this while providing high quality independent financial advice and services. While many other larger advice firms have chosen to give restricted advice, we remain committed to providing independent advice, which puts our clients’ interests at the forefront of everything we do.”

Chase de Vere’s highest paid director received a total remuneration package of £767,000 in 2016.

£636,000 came from their salary, £5,000 in pension and the rest in a share plan with parent company Swiss Life.


Chase de Vere kick-starts recruitment drive

Chase de Vere is to looking to boost its ranks with the addition of 20 advisers. The firm will be recruiting across its Basingstoke, Bath, Birmingham, Cambridge, Cardiff, Chester, Glasgow, Leeds, London, Manchester and Tyne & Wear offices. The company currently employs 195 IFAs. Chase de Vere chief executive Stephen Kavanagh says: “We want to […]


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