The Financial Services Compensation Scheme has recouped more than £122 million from the failure of Keydata, according to its latest figures.

UK's Financial Services Compensation Scheme has recovered more than £122 million ($188 million) in relation to the collapse of Keydata Investment Services.

The FSCS has paid out a sum of £330 million in compensation to Keydata consumers since the firm went into administration in June 2009. The majority of those compensated had purchased Keydata investment products falsely marketed as individual savings accounts.

“We have a duty to pursue recoveries where it is cost effective to do so. We take that duty very seriously. It benefits the industry by returning money to the firms that pay our levies. So I am happy to confirm that our work in this area delivers results,” said FSCS chief executive, Mark Neale.

The UK's statutory compensation scheme, which protects consumers from the failure of authorised financial services, recouped £52 million from litigation against Independent Financial Advisors, FSCS said in a statement on the London Stock Exchange.

The FSCS considered the IFAs' ability to pay ahead of recoveries and did not target levels of claims “simply to force firms to go bust”, the statement said.

Accounting for costs incurred by the pursuit of recoveries, the scheme retrieved a total of £102 million. In fact, recoveries overshadowed costs by a margin of more than five to one.

Of the £26 billion-plus sum of compensation the scheme has paid out to date, Keydata is so far the biggest investment failure the FSCS has faced.