The main investments promoted by Keydata have been grouped into 5 categories. For information specifically relating to Categories 1, 2 and 4, and to Lifemark SA, we have set up separate pages of Q&As. Just click on the relevant category:
Category 3: Funds backed by Lifemark SA, confirmed to be ISA eligible
Category 5: Funds backed by Lifemark SA, issued in non-sterling currencies
Keydata was placed into administration on 8 June 2009. Dan Schwarzmann and Mark Batten of PricewaterhouseCoopers LLP were appointed joint administrators. On 13 November 2009 the FSCS confirmed that Keydata was ‘in default’, meaning that investors with eligible claims against the firm are able to claim compensation from the FSCS.
Keydata’s Administrators (PricewaterhouseCoopers LLP) have grouped the main investments promoted by Keydata into the following categories:
Schedules of all the funds included in each of the five categories are available on the Administrators’ website: www.pwc.co.uk/KIS
The FSCS has invited claims from investors in Categories 1 and 2.
For the FSCS's position on Category 4 Claims please refer to Q&As about Category 4 Claims.
For the FSCS's position, on Categories 2, 3 and 5, please refer to Q&As about Lifemark SA.
For claims against Keydata relating to Investment business, the FSCS can pay compensation to eligible claimants up to a maximum of £48,000 (100% of the first £30,000 and 90% of the next £20,000) per person.
The FSCS’s protection is governed by the FCA’s Compensation (COMP) Rules, located in the Redress section of the FCA’s Handbook. The COMP Rules set out who is eligible to benefit from the protection provided by the FSCS.
For example, generally speaking, we can only accept claims from individuals and small companies. Overseas financial services institutions and large companies are excluded.
Full details of who is eligible to benefit from the FSCS protection can be found in subsection 4.2 of the COMP Rules.
Keydata administered funds on behalf of a number of third party companies. Amongst other responsibilities, Keydata would oversee the payment of income to investors in these funds.
The FSCS does not expect to deal with claims relating to these products.
Further details are available on the Administrators' website: www.pwc.co.uk/KIS
The FSCS expects to process the majority of claims within six months of receiving an application form. The FSCS will review the information provided and make a decision on each claim on a case by case basis.
In cases where the FSCS may pay compensation in respect of tax liabilities, the FSCS has agreed a process with HM Revenue and Customs (HMRC) and PricewaterhouseCoopers LLP (Keydata's Administrators), to pay directly to HMRC any compensation due to eligible Category Two investors in relation to their tax liability.
Once a claim has been made to the FSCS, if any claimants believe that the FSCS should treat their case as a priority because they are facing immediate financial hardship, they should let the FSCS know as soon as possible. Where there is immediate financial hardship, we will do what we can to accelerate the handling of the claim.
The FSCS is funded by the financial services industry on a 'pay-as-you-go' basis. We levy firms each year on the basis of our estimates of the compensation we are likely to have to pay out in a financial year. If our estimates ever turned out to be too low, or we were required to make additional payments, we are able to borrow additional funds during the course of the year and / or make additional levies.
If you have any queries regarding Keydata you can contact our Customer Services Team on 0800 678 1100. You can also email us at firstname.lastname@example.org.
Please check the Administrators’ website for general information about their work, including details of the funds in each of the five categories.
The MoneyMadeClear website also includes updates relating to Keydata.
Yes, under the statute and rules by which we operate and the terms of the FSCS's application form, on the payment of compensation, investors transfer or assign to the FSCS their legal rights in their entirety against the firm in default and/or any relevant third parties. In other words, the FSCS then "stands in the shoes" of the investors. Relying on such rights, the FSCS seeks to recover all or part of the cost of compensation. Such recoveries are used to mitigate the cost of levies on financial services firms, which are raised to fund the operation of the FSCS and the payment of compensation.
To the extent that the amount recovered in relation to an individual claim exceeds the amount paid in compensation, after costs of recovery, the FSCS forwards the recovery to the investor.
There is no need for claims to be withheld by investors. Under its rules, the FSCS would ensure that in these circumstances investors would not be disadvantaged by early payment of the claim, and would forward to the investors such amount of dividend that the investors would otherwise have retained had they received the dividend distribution(s) first before applying to the FSCS for compensation.
The FSCS will review previous decisions in light of any relevant new information which it receives and will reopen claims if appropriate.