Keydata Investment
Services Ltd
20 November 2009 – update
The Luxembourg financial services regulator has appointed a 'provisional administrator' to work with Lifemark, a company whose secure income bonds were distributed by Keydata. This appointment is not an insolvency procedure under Luxembourg law and the provisional administrator will work closely with the firm's management to improve its business.
Investors in these Lifemark backed products do not have to take any action at this time.
The FSA will continue to work closely with the Luxembourg regulator on this matter. Further information is available from:
13 November 2009 – update
The Financial Services Compensation Scheme (FSCS) has announced today that it will contact Keydata investors to let them know that they can start making claims for compensation on the following products:
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Secure Income Bond 1, 2 and 3
If you have invested in any of these products, the FSCS will write to you confirming that you can make a claim for compensation, up to £48,000, in relation to your whole investment. The FSCS will consider all claims on a case by case basis.
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Secure Income Bond issue 4, Secure Income Plan issues 1 to 12 and 14, Defined Income Plan issues 1 to 8, Defined Income Plan (Special Editions) and Lifemark Secure Income Bonds – ISA Products
If you have invested in an ISA in any of these products, the FSCS will write to you confirming that you can make a claim for compensation but only on the tax due after 8 June 2009. The FSCS will consider all claims on a case by case basis.
For full details about the process of making a claim for compensation on all the above products please see the FSCS announcement published today.
Tax liabilities
HM Revenue & Customs (HMRC) have announced today that any tax due on the above products prior to Keydata's administration (8 June 2009) will be collected from Keydata not the investors. HMRC has also explained that investors have not lost their ISA tax wrapper as a result of investing in a Keydata ISA product. For details of how tax will be applied after 8 June 2009, please see the HMRC announcement published today.
What happens next?
You do not have to do anything. The FSCS will contact investors with details of how to make a claim for compensation.
30 June 2009
Pricewaterhouse Coopers, the administrator of Keydata Investment Services (Keydata), has announced today that it has had to freeze some interest payments and some redemption rights to anyone that owns the following Keydata products:
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Secure Income Bond 1, 2 and 3
If you have invested in any of these products, no income can be paid to you at the moment and you cannot reclaim your investment. PwC will be writing to customers due an interest payment today.
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Income Property Bond 1-6
If you have invested in any of these products, no income can be paid to you at the moment and you cannot reclaim your investment.
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Secure Income Bond 4, Secure Income Plan 1-12 & 14 and Defined Income Plan 1-8 Special Editions and other Lifemark branded products
If you have invested in any of these products, you will continue to receive income from the investments as normal, but you cannot get your capital (money invested) back until further notice.
People with money invested in the funds where Keydata provided third party administration services and those backed by major financial institutions are not affected – their investments are safe.
Keydata operates from three locations in London, Glasgow and Reading. It designs, distributes and administers its own structured investment products; and also portfolios for third parties.
What happens next?
If it emerges that Keydata has caused customers to suffer a financial loss and cannot meet its liabilities, then the Financial Service Compensation Scheme (FSCS) may be able to help.
PwC will be regularly updating their website or you can call their helpline on 0844 391 3412, but at this stage no further information is available.
Backgound
On 8 June 2009 we placed Keydata into administration and suspended the firm from carrying out any regulated activities because we had concerns about the firm’s financial position. We wanted to protect customers while a full assessment was carried out and appointed insolvency specialists from PwC to carry out an assessment and manage the firm in the meantime.
Disclaimer
News articles on this website are accurate, to the best of our knowledge, only at the date of publication. If the information they contain changes, follow-up articles may be published.