AWD over-invested client in Keydata, FOS rules

Laura Miller
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AWD Chase de Vere exposed a client to Keydata at more than twice the appropriate level considering his medium attitude to risk, the financial Ombudsman (FOS) has ruled.

An unnamed adviser with the national IFA invested almost half of a customer's open annuity in the failed investment firm, but the FOS recommended it should have been no more than 20% "in accordance with the principles of diversification". IFAonline can also reveal AWD's in-house literature, made available to the client before the investment was made, recommended only "a small holding (circa 10%)" in the traded US life settlements asset class, in which Keydata resided. The FOS recommends AWD pays the client as much as necessary to give their investment the transfer value it would have ...

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