The Financial Ombudsman Service is upholding 93 per cent of Keydata complaints taken to decision stage against advisers for unsuitable advice.
Since April 1, when the FOS began publishing its final decisions, the ombudsman has upheld 53 Keydata cases against advisers and rejected just four. The cases relates to more than £1m invested in Keydata and involve up to 30 advisers.
Cases only comes to decision stage if it is challenged by one of the parties involved with the vast majority of cases resolved at adjudication stage.
Every Chase de Vere case that has gone to the FOS decision stage since April has been upheld. The firm had the most Keydata complaints overall, with a total of 13, or almost two a month, relating to at least £500,000 in client investments.
Care Asset Management had four complaints upheld on Keydata investments worth nearly £150,000 while Positive Solutions saw three Keydata complaints upheld with one case concerning a Keydata investment of £230,000.
Lighthouse Advisory Services saw two Keydata complaints upheld.
Some advisers were not named in the decisions and not all the investment amounts were disclosed. Some complaints were made by solicitors on behalf of an estate because those involved had since died.
Around 30,000 investors lost £450m when Keydata collapsed in June 2009. Many have claimed from the Financial Services Compensation Scheme, which has separately sought to recoup money from advisers.
The FOS says it has received about 100 complaints against advisers for Keydata advice. It says each case is taken on its own merit.
Forty Two Wealth Management owner Alan Dick says: “There has been significant unsuitable advice and people have to be compensated to restore trust in financial markets. I am surprised at the high uphold rate because my experience of the ombudsman is it is a complete lottery.”
Chase de Vere head of communications Patrick Connolly says: “We would not have fought the cases if we did not have good reasons for doing so.”
Care Asset Management, Positive Solutions and Lighthouse declined to comment.