Positive Solutions among FSCS Keydata targets

Positive Solutions is 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.

A letter to an undisclosed IFA firm, seen by Money Marketing, says the FSCS has claims against the firm on the grounds of negligence. It claims that the firm breached its duty of care to clients by advising them to invest in Keydata products.

Money Marketing understands the FSCS has written to dozens of firms to begin the recovery process, with individual claims against firms ranging from £500,000 to over £1m.

In January, the FSCS imposed a £326m interim levy on the industry, mainly to cover compensation costs after the Keydata collapse. Advisers paid £93m while fund firms paid £233m.

PosSol is among the firms to have received a letter from the FSCS’s lawyers. A spokeswoman at PosSol’s parent company Aegon declined to give any further details.

AWD Chase de Vere, which has upheld at least eight Keydata complaints, says it has not received a letter. Tenet also says it has not had a letter.

Sesame Bankhall Group dec-lined to comment on whether it has received a letter but a spokesman says: “Our research team never approved these products and it is rare for one of our members to choose a product that is not on our recommended list.”