26th March 2014
Majority of balancing payments made by FSCS to Keydata claimants
FSCS is pleased to confirm it has now made the majority of balancing payments to claimants who suffered losses in Lifemark investments. In some cases FSCS needed to do further work to settle the nominal claim amounts before payments could be made. FSCS has been working on this reconciliation process since December, and we expect that we will being sending balancing payments to the majority of claimants whose compensatable losses exceed £30,000 (but who have not yet received a balancing payment) in mid-April.
In January, FSCS received a distribution from Lifemark's Trustee as stated in the bondholder notice on PWC's website. The Trustee has published a further bondholder notice announcing that another distribution to bondholders is being made this month (March). As outlined in our last update, the January distribution and all future distributions must be calculated using the method specified by the Court. The effect of this is that the distribution amount due to individual bondholders will vary depending on which Lifemark bond(s) a claimant invested in.
Claimants generally submitted their claim to FSCS under a single claim reference, even where they made multiple Lifemark investments. Therefore, in order to calculate the payments due to claimants with compensatable losses over £30,000, FSCS needed to carry out a review of claims data. This enabled us to reconcile FSCS claims and the Lifemark investments made by the claimants. We are close to completing this work, and we expect to begin sending a further FSCS payment (relating to both of the Trustee's recent distributions) to claimants in mid-April.
Having completed this review exercise, we expect that we will be able to make payments to claimants following future distributions by Lifemark's Trustee much more quickly. Based on present information from the Trustee the next distribution will be made in or around September 2014. We will continue to provide updates on any further payments on our website.