25th August 2009
Since Keydata was placed into Administration on 8 June 2009, we have been working closely with the Administrators, PwC, to understand as much as possible about what has happened. This work will ensure that, if there is compensation for the FSCS to pay, we will be ready to step in as quickly as possible. If that happens, the FSCS and PwC will work together to ensure that investors know how to make a claim for compensation.
Since Keydata was placed into Administration, the FSCS has obtained information from PwC and the FSA regarding Keydata, and we are now investigating the potential compensation claims that investors may have. These enquiries and assessments are continuing. We understand the anxiety the delay may be causing investors, but we are working hard to determine the extent of the FSCS's potential involvement (if any) in relation to Keydata.
If it emerges that Keydata has caused retail customers to suffer a financial loss for which it is liable, and it cannot meet those liabilities to investors, the FSCS may be able to help. If there is compensation for the FSCS to pay, the FSCS will confirm Keydata to be "in default". If that happens, the FSCS would assess any claim made by a Keydata customer on a case by case basis in accordance with the rules set for us by the FSA and in light of the available information.
PwC have confirmed on their website that certain problems have been identified with the investments sold by Keydata. For example, we understand from the Administrators that the underlying assets associated with Secure Income Bond issues 1, 2 and 3 appear to have gone missing and some other products sold as ISAs have been found not to be ISA-qualifying. The picture continues to change as new information comes to light and PwC are updating their website with developments. We are specifically looking at whether Keydata can be held legally liable for the losses that may have been suffered by investors as a result of the problems identified by the Administrators. It is too early to say when we will complete this work; this is a complicated situation and it may take some time for the facts to become clear, but we are doing everything we can to complete it as soon as possible.
Keydata investors do not need to contact the FSCS at this stage. The FSCS will update its website as soon as any new information becomes available. Although we are not able to say at this time when the FSCS will be in a position to confirm whether it is able to step in to help Keydata investors, we will provide investors with a further update via our website by the end of September 2009, if not sooner.
Further information about the FSCS and Keydata can be found in the Frequently Asked Questions section of this website. Information about the Administrators' investigations is available on PwC's website and via Keydata's dedicated helpline on 0844 391 3412