FSCS legal team awarded for pursuit of Keydata advisers

The Financial Services Compensation Scheme (FSCS) legal team that helped recover some of the hundreds of millions of pounds it paid out over the collapse of Keydata from financial advisers has been given an industry award for its efforts.

Keydata collapsed in 2009, leading to thousands of mis-selling claims against advisers, and a decision by the FSCS to pay out compensation to investors on the grounds they had suffered widespread "fraudulent misrepresentation". In total the FSCS paid out £326m to Keydata investors, sending the levies paid by advisers to the scheme soaring. To date, the FSCS said it has secured more than £122m in recoveries and incurred approximately £20.3m in costs in relation to Keydata. The FSCS' own legal team, which has worked with law firm Herbert Smith to pursue the hundreds of firms who advi...