30th November 2010
FSCS announces its decision on compensation for Lifemark investors’ losses
This update is for customers of Keydata who hold investments backed by Lifemark SA.
The FSCS has completed its investigations into the valuation of the Lifemark bonds. We are now satisfied that these bonds have no value for FSCS in quantifying the claims of individual Lifemark investors. Compensation payable to eligible investors will not, therefore, be reduced to take account of an amount representing a value for the bonds.
This means that the FSCS can now quantify claims and pay compensation to those investors who are eligible under our rules, subject to the compensation limit. The limit for investment claims against Keydata is £48,000 (100% of the first £30,000 of financial loss suffered and 90% of the next £20,000, per person). We expect to start making compensation payments during December.
We encourage all investors who have been sent an FSCS application form to complete it and return it to us as soon as possible. This will allow us to determine whether or not their claim is eligible and to pay compensation accordingly. If any Lifemark investor who dealt with Keydata has not yet received an application form, they should contact our Customer Services Team on 0800 678 1100 or 020 7892 7300, or email us at email@example.com.
- The current compensation limit for investment claims is £50,000 per person. However, the FSCS’s previous limit of up to £48,000 applies to claims relating to Keydata. This is because the firm was declared in default in 2009, when the previous limit applied.
- The FSCS published a previous update on Keydata on 22 October 2010.
- The products affected by this announcement include the Defined Income Plan issues 1-8, the Income Plan issues 1-14, the Secure Income Bond issue 4 and the Secure Income Plan 1-14. Full details of all the affected products are available on the administrators’ website.
- The FSCS has published some Questions and Answers about Lifemark SA which you may find helpful.
- Further information about Keydata is available on the FSA's website.