Commercial litigation claims go up almost 500% after Keydata collapse

Published on 9 Aug 2010 under category: legal

Claims to the Financial Services Compensation Scheme (FSCS)'s investment intermediation sub-class shot up by 483 per cent last year.
The rise in commercial litigation has mainly been attributed to the collapse of the investment firm Keydata.
In total, £116.9 million was paid out to individuals filing for claims.
According to the FSCS data, the investment sub-class received around 24,301 claims in the last financial year.
In 2008/2009, it only received 4,170.
Commenting on the figures, the FSCS said: "The significant increase is attributable to the high volume of claims we received as a result of the Keydata Investment Services Limited default.
"At the same time, claims against Pacific Continental Securities Limited and Square Mile Securities Limited continued in similar volumes to 2008/09."
Keydata went into administration on June 8th 2009, with PricewaterhouseCoopers appointed to oversee the process.
It was reported in May this year that 90 per cent of its investors were eligible for compensation.

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