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Chase de Vere sets aside £4m for Ucis redress

Chase de Vere has set aside £4.1m for redress relating to unregulated collective investment schemes, as it posts a pre-tax loss of £1.2m for 2013.

This compares to a £11.2m pre-tax loss for 2012.

In its 2013 accounts, Chase de Vere has set aside £3.3m for “exceptional items”.

This includes a £4.1m provision for complaints relating to “distressed investments”, which are understood to mainly relate to Ucis.

Chase de Vere says in 2013 it experienced an increased number of these complaints and as a result “the directors considered it appropriate to make a provision for any redress and settlement on an individual case by case basis”.

Also under exceptional items, the firm received £5m in recovered professional indemnity insurance costs. It is understood this relates to the settlement which Chase de Vere reached with the Financial Services Compensation Scheme in its legal battle over Keydata advice.

In May, Chase de Vere confirmed it had reached a settlement with the FSCS for an undisclosed sum after being selected as a lead defendant in the case. 

Chase de Vere chief executive Stephen Kavanagh says: “Our revenue, adviser productivity and proportion of recurring income all increased in 2013 and we are incredibly well positioned to be successful going forwards.

“However, while our business is performing well, we are still paying the costs of legacy product sales, many of which were transacted years ago by advisers who have long since left us.

“It is right that we have made additional provisions for legacy product sales. This means we have funds available to recompense clients if they are entitled to any form of redress.”

Chase de Vere says its PI insurance is now provided by its parent company Swiss Life, which provides a more “cost-effective” solution than obtaining PI from an external provider as it has done in the past.

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