IFA firm Target Financial Management is to enter administration following £6m of claims relating to Keydata.
Bath-based TFM, which has 28 employees, is part of the group Target Chartered Accountants, which has around 197 employees. Subsidiaries Target Consulting Group and Target Consulting entered administration on Friday and TFM is expected to enter administration imminently. Administrators have not yet been appointed to Target Chartered Accountants, which is based in London.
Target Financial Management was among the firms being pursued by the Financial Services Compensation Scheme to recoup compensation paid to Keydata claimants.
Law firm Herbert Smith has written to Keydata distributors on behalf of the FSCS to kick-start the legal process of pursuing recoveries.
In January, the FSCS imposed a £326m interim levy on the industry, mainly to cover the costs after Keydata collapsed. Advisers paid £93m while fund firms paid £233m.