30th September 2009
Updated 30 September 2009
The FSCS is now at an advanced stage of its investigations and analysis into issues arising out of the Administration of Keydata, with a view to confirming its involvement in compensating investors with claims against the firm.
There are a number of complicated legal issues surrounding Keydata. As a result, the FSCS has engaged external experts to assist with the ongoing analysis into the categories of claim that might be brought against the firm. At the same time, we are continuing to work closely with the Administrators (PwC), the FSA and HM Revenue and Customs to understand the full implications of the failure of Keydata for consumers.
We are focusing our work on two broad categories of potential claims that might be brought against Keydata. The first category relates to the Keydata Secure Income Bond issues 1, 2 and 3 where shortfalls have been confirmed by the Administrators. The central question there is whether any losses were caused by Keydata. The second category relates to potential tax liabilities arising from those Keydata investments that were incorrectly promoted as ISAs. In particular, we are trying to establish which categories of claim we are likely to be able to consider, and the correct approach to assessing those claims.
Although we are not able to say at this time when we will be in a position to confirm whether we are able to step in to help Keydata investors, we will provide investors with further updates on significant developments as they occur. We currently anticipate being able to confirm whether or not we are likely to be able to help in November, if not before.
We would like to assure investors that we are working hard to determine the extent of our involvement in relation to Keydata as quickly as possible, and thank investors for their patience as we work through this complicated process.