The Financial Services Compensation Scheme has recouped a total of £52m through its legal battle against advisers who recommended Keydata products.
In an announcement posted on the London Stock Exchange today, the FSCS says it has secured £122m in total recoveries relating to the collapse of Keydata. Once the costs of pursuing the recoveries is taken into account, the scheme has clawed back a net total of £102m.
The FSCS has paid out a total of £330m in compensation to Keydata investors since the firm went into administration in June 2009.
The compensation scheme says its legal challenge against Keydata advisers took into account their ability to pay, and it did not pursue claims “simply to force firms to go bust”.
FSCS chief executive Mark Neale says: “We have a duty to pursue recoveries where it is cost effective to do so. We take that duty very seriously.
“It benefits the industry by returning money to the firms that pay our levies. We have achieved £122m in recoveries so far. That figure dwarves the overall costs of achieving them. In fact it does so by a margin of more than five-to-one. That’s good news for the firms that pay for FSCS protection.”