Chase de Vere today announced steep losses for 2012 of £11.2m, impacted by the £14.4m set aside to cover the costs of its Keydata legal battle and compensating clients sold Arch Cru and payment protection insurance.
A provision of £2.1m represents the expected cost of settling claims from clients related to the failure of Keydata.
A figure of £0.7m is related to Arch Cru legal fees and AWD is among the firms defending its advice against attempts by the FSCS to clawback compensation it has paid out to AWD investors.
Other regulatory obligations are cited as being the Financial Services Compensation Scheme (FSCS) levy and Payment Protection Insurance (PPI) complaints.
The £11.2m loss in full-year 2012 compares with £1.2m profits in 2011.
In a statement related to Keydata the directors said that the £2.1m complaints provision represents the gross obligation.
The £0.7m related to Arch Cru is "deemed the best estimate of future ongoing legal costs associated with this claim".
With regards to other complaints, including PPI and the risk association with the provision of advice, the company said it will use appropriate systems and controls within the sales advisory process.
It will also maintain risk transfer through the maintanance of Professional Indemnity Insurance cover and adherence to the groups Treating Customers Fairly (TCF) programme.
In December, the company issued further share capital of 9 million ordinary shares of £1 each to its parent company AWD Group plc for a cash consideration of £9m.
The purpose of this was to maintan regulatory capital requirements.
Our weekly heads-up for advisers
'Nothing can prevent scammers developing workarounds'
Stalwart Scottish Mortgage takes third place
Consistency and compliance vs. slower reaction time
Search for replacement to begin imminently