National IFA AWD Chase De Vere’s pension mis-selling for which it was fined £1.1 million in 2008 and undertook a past business review is still haunting the company, which paid out £1.5 million in customer compliant redress last year.
The majority of the £1.52 million paid out related to pension mis-selling. The company had set aside a provision of £5.2 million for complaint redress.
Of the £5.2 million provision, £600,000 was set aside specifically for complaints that related to ‘issues that currently have high profile within the financial services industry’.
A spokesman for AWD said: ‘Following on from the pension mis-selling and Financial Services Authority (FSA) fine we agreed to with the FSA we would have a provision set aside to pay complaints. We will continue to have that for future complaints.’
The spokesman added it was likely AWD would continue to pay redress due to pension mis-selling pre-2008.
‘It is not surprising that we have paid significant levels of compensation to clients in 2010. Prior to 2008 our checks and controls were not of the standard that they should have been and where clients have been disadvantaged because of this it is right and proper that we ensure they are suitably compensated. While AWD Chase de Vere is a much improved company today, it is entirely possible that we will still need to pay significant amounts of compensation in 2011 also.’
In 2010, AWD , headed up by chief executive Stephen Kavanagh (pictured), posted a profit before tax of £3.2 million, an increase from £1.2 million in 2009. Turnover was £35 million, up from £28 million the previous year.