21st May 2010
Category One – claims relating to investments in the Keydata Secure Income Bond issues 1, 2 and 3
Of the 5,000 Keydata customers who have so far submitted a claim for compensation, we have been able to issue decisions on over 4,400. 90 per cent of those decisions have resulted in compensation payments.
A number of the outstanding claims have required detailed investigation. We are continuing to work hard to complete these claims as quickly as possible.
If you have a claim relating to Category One and you have not yet received an application form, please contact us.
Category Two – tax claims relating to Keydata investments sold as ISA qualifying and backed by Lifemark SA
We have sent 14,200 application forms to investors in Category Two. Of those, 13,500 have been returned to us and 11,950 claims have been resolved. 80 per cent of claims that have been resolved resulted in an offer of compensation (compensation will be paid to HMRC as the liability arises). We expect to have processed all the remaining claims in Category Two by the end of May.
As a result of the Category Two products being incorrectly described as ISA qualifying, we are currently only able to consider claims in respect of any tax liability that has arisen. Please note that the developments in relation to Lifemark SA (outlined below) do not impact on the process for Category Two claims.
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.
We are carrying out detailed investigations, liaising with the FSA, Keydata’s Administrators, and other relevant parties, to learn more about what these investigations mean 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 Categories 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 this number:
01189 255 933
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 do so.