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Chase de Vere to settle FSCS Keydata case

The Financial Services Compensation Scheme is to reach a settlement with Chase de Vere in the coming days over client recommendations to invest in Keydata, Money Marketing understands.

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 is 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.

It has since been struggling to select replacement lead cases to continue with the case and at a case management conference this Friday will propose expanded criteria for lead defendants which could see firms without insurance or representation selected.

The FSCS is now expected to reach a settlement with Chase de Vere by the end of this week.

The witness statement due to be given by FSCS lawyers Herbert Smith Freehills partner Kirsten Massey at the conference, seen by Money Marketing, says: “The claimant anticipates that by the time of the case management conference the claims will be settled in respect of all six lead case defendants.”

Chase de Vere and the FSCS declined to comment.

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. 

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. So “The witness statement due to be given by FSCS lawyers Herbert Smith Freehills partner Kirsten Massey at the conference, seen by Money Marketing” If both parties declined to comment, who released the statement to MM before it was seen by the court and why?

  2. It looks like MM have missed the fact it implies in an NMA article, that the FSCS had backed down over Chase De Veres £56 million claim over its sale of Lifemark-backed Keydata but the FSCS was pursuing it for £8.5 million related to its sale of SLS-backed Keydata policies.

    Does this mean;

    1 the FSCS are only looking for 8.5 million from Chase de Vere now

    2. Only looking to recover fro m ALL firms on SLS cases and not on Lifemark cases?

    3. Why are they only now looking for recoveries from Chase on SLI backed and NOT Lifemark backed.

    This article actually raises some VERY serious questions if the FSCS is backing down on pursuit of such a large part of the claim against Chase de Vere and should interest any parties who have not settled yet with FSCS.

    Even for those that HAVE settled, FSCS backing off on nearly £50 million of claims with Chase on Lifemark begs the question, was their a case in the first place which NEEDED to be settled for any reason other than expediency?

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