Angry N&P customers confront Bullock over Keydata losses

Norwich & Peterborough (N&P) boss Matthew Bullock has faced criticism from customers sold Keydata Investment Services products by the building society’s IFA arm.

Bullock (pictured) was confronted by angry Keydata investors at building society N&P’s annual general meeting, who quizzed him about the problems with the life settlement-backed bonds N&P sold. Investor Michael Peters said some N&P customers now faced losing their homes.

‘The directors were reminded in the strongest possible terms that their society’s reputation hangs on the outcome of the investigations and how they intend to help victims should our capital and income be lost,’ said Peters.

Thousands of investors who lost money after investing in SLS Capital-backed products have been fighting with the Financial Services Compensation Scheme after £103 million of their money disappeared. Around 25,000 who invested through Keydata into Lifemark life settlement products have not received income payments since January and are still waiting on restructuring proposals.

N&P said it was working with Keydata administrator PricewaterhouseCooper and the Financial Services Authority. ‘We are doing everything we can but it is in other people’s hands,’ said an N&P spokeswoman. ‘We are very frustrated at the pace of this.’

Separately, PricewaterhouseCooper has sold a £191 million book of structured products created by Keydata to Merchant Capital. Last November Merchant Capital bought the structured product book of Arc Capital & Income, which went into an administration after fears that it could not compensate consumers invested in its Lehman Brothers-backed plans.

The Arc business has been rebranded as Merchant Plan Managers and is run by former Arc director John Gracey.