Keydata Update

31st March 2010

Category One – claims relating to investments in the Keydata Secure Income Bond issues 1, 2 and 3

All known investors in Category One products should have received an application form from us following our announcement last November. If you have not yet received an application form, please contact us.

We are urging investors to return their completed application forms as soon as possible, to enable us to investigate their claims. It is important that investors also ensure their claim does not become time barred under the Limitation Act 1980 (as amended). The Act stipulates certain time limits for bringing legal claims. This should not be an immediate issue for most investors; however, if you have any concerns regarding this or require advice, you may want to consult a solicitor.

Category Two – tax claims relating to Keydata investments sold as ISA qualifying and backed by Lifemark SA

Investors in Category Two products are reminded to return their completed application forms as soon as possible. Our original deadline of 31 March 2010 has now been extended to 30 April 2010.

Following our update in January this year, we have now contacted all investors that we have been able to identify who invested in Category Two funds sold as ISAs. These investors may be liable for income tax on interest received on their investments from the date of Keydata’s administration.

In order to progress to the next stage in the process agreed with HM Revenue and Customs (HMRC) and PricewaterhouseCoopers LLP (Keydata’s Administrators), it is important that investors return their forms by this new deadline. If you fall into this category and have not received an application form, please contact us as soon as possible.

Please note that the recent developments in relation to Lifemark SA (outlined below) do not impact on the process for Category Two claims. Investors will remain liable for tax on any interest received in respect of their investment since Keydata was placed into administration in June 2009.

The FSCS has compiled a list of Frequently Asked Questions (FAQs) relating to Category Two tax claims which you may find helpful.

Category Four – claims relating to Keydata Income Property Bond investments

We are currently considering whether these products may give rise to claims and will provide a further update on Category Four funds as soon as we are able to.

Recent announcements relating to Lifemark SA

Investors may be aware of recent announcements relating to Lifemark SA. Lifemark SA is a company established in Luxembourg whose bonds were distributed in the UK by Keydata. These bonds have been categorised as Category Two, Category Three, and Category Five funds, and include investments promoted by Keydata with names such as the Defined Income Plan, Secure Income Plan and Income Plan. You can find the full list of funds included in Categories Two, Three and Five on the Administrators’ website.

On 1 February this year, Luxembourg’s financial services regulator, the Commission de Surveillance du Secteur Financier (CSSF), suspended the securities issued by Lifemark SA from trading on the Luxembourg Stock Exchange. The CSSF announced at the same time that it was considering a proposal from Lifemark SA to restructure its debt.

Lifemark SA has since confirmed that it has failed to pay income on a number of its bonds. This means that certain Keydata investors in Category Two, Three and Five funds may not receive the regular income payments that they expect to receive from their investments.

We are monitoring these developments closely and are liaising with both the FSA and Keydata’s Administrators to learn more about what this means for Keydata investors. It is not yet clear what the implications are for investors. If necessary we will consider whether Keydata is legally liable for any losses that may arise for investors in Category Two, Three and Five funds and whether we can pay compensation.

In the first instance, if investors have any queries regarding the payment of income, they should check PricewaterhouseCoopers LLP’s website at www.pwc.co.uk/KIS or call the Keydata client services team on 0844 391 3412.

More information

Jargon Buster

  • FSA

    Financial Services Authority, was previously the UK's regulator for the finance industry. It was replaced by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) on 1 April 2013.
  • Investment

    a financial product in which money can be invested to earn interest or profit (although the value of investments can go down as well as up).