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Chase de Vere profits up as Keydata issue fades

Chase de Vere profits up as Keydata issue fades

Chase de Vere increased its profits before tax by 34 per cent as it reduced the annual costs related to redressing clients for its legacy business.

The company reported a profit of £5.3m for 2015, up from the £4m it made in the previous year.

The report stated: “This improvement has been achieved through a combination of a reduction in the annual costs associated with client redress in respect of legacy business, increased revenue and continued control of overheads.

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“During the year a past business review was undertaken as part of the 2014 agreed settlement with the Financial Conduct Authority in relation to the enforcement investigation into the sale of Keydata products between August 2005 and June 2009.

“The impact of this was a reduction of the provision held at the end of the previous financial year to £127,000.”

In November 2014 Chase de Vere was fined £560,000 because the FCA found it did not research the Keydata products well enough to understand the risks they posed to customers and did not ensure that its advisers understood those risks.

In 2013 the company put aside £3.8m for regulatory provision as part of the Keydata case.

During 2015 fee income revenue increased from £48m to £49m and average fee income per adviser rose from £205,000 to £216,000.

Stephen Kavanagh, chief executive of Chase de Vere, said: “As can be seen from these results, any legacy issues of the past are now firmly behind us.

“We are a strong, robust and profitable company with our focus on providing high quality advice and service to our clients and, with most larger firms now giving restricted advice, we are aiming for Chase de Vere to be the flag bearers of independent financial advice in the UK.

“I see further opportunities for expanding both our private and corporate advice services, due in large part to a reducing supply of independent advice on the market.

“We are using this foundation to grow our business organically and also by hopefully persuading like-minded, service-focused, good quality advisers and adviser firms to come and join us.”

Chase de Vere, which is owned by Swiss Life, has 13 offices across the UK.