The FCA has fined Chase de Vere Independent Financial Advisers Limited (Chase de Vere) £560,000 (including a 30 per cent settlement discount) for misselling Keydata products. Between 2005 and 2009, Chase de Vere’s advisers sold Keydata life settlement products to 2,806 customers who collectively invested £49.3 million. The FCA found that 139 customers invested a total of £4.4 million over the scheme limit and most of these people may not recover their losses from their investment.

The FCA found that Chase de Vere did not research the Keydata products adequately and, therefore failed to understand the risks they posed to customers. In addition, Chase de Vere stopped providing standardised wording to advisers to explain the risks of products. Consequently, the advisers failed to inform customers about the features and risks of the products in a way that was clear, fair and not misleading. The FCA found breaches of Principles 3 and 7 of the Principles for Businesses and breaches of various rules from the FCA’s conduct of business sourcebook.

The Financial Services Compensation Scheme has paid Chase de Vere customers up to the scheme limit, which was £48,000 per customer at the time. Chase de Vere is expected to review its sales to any customers who have not yet submitted a claim about Keydata and offer redress, where possible.

Copies of the:

Final notice; http://bit.ly/11LdAfE

Press release; http://bit.ly/1wfpf3A