Keydata investors see compensation claims rejected

Indeed they have. The following has been published by the KeydataVictims group as a result of this action.

"The KeydataVictims group strongly denounce the decisions by the FSCS not to compensate Keydata investors who invested in Keydata products (non ISA) SIB1-3.

We believe such a decision is tantamount to saying that it is acceptable within the UK regulatory regime to raise funds from UK investors on the basis of materially false literature ; to fail in performing adequate due diligence of third parties ; to fail to inform investors of use of unregulated third parties ; to fail to provide the claimed insurance coverage ; to fail to adequately supervise related third parties ; to fail to act on warnings from internal compliance functions ; to mask problems with third parties late or non-payment using corporate funds ; to knowingly market and resell problematic products to consumers (secondaries) ; to fail to identify to investors any conflicts of interests of directors ; to fail to highlight to investors any change of third parties ; to fail to ensure adequate risk controls were in place and to fail to accept any responsibility whatsoever for UK investors' funds.

Simply put, as investors, we invested in Keydata not in SLS. Investors were completely unaware of the existence or role of SLS. Keydata has a responsibility to its clients, irrespective of whomever it chose to use in carrying out that duty. Keydata has spectacularly failed in this respect.

We would strongly encourage the FSCS to rethink its decision."

If you are a victim why not join the group and seek mutual support from other victims?

The FSA is responsile for any malpractices of the financial services industy towards the pulic.. It has licenced Keydata and approved

its products for sale to the public

But Keydata did not disclose to its investors they were working with second rate backers and suspect crooks..Therefore the FSA is quilty of dereliction of duty and should compensate the investors.

The Keydata investors have an open and shut case. They should sue the FSA and they will win.

The FSA has, in the last week, decided, belatedly, to regulate financial companies and their products during their sale. It is YEARS too late. Had it acted on the warning in 2005 from KPMG on Keydata, it would have prevented most - if not all losses.

The only way to nail this problem for good is if someone pays until the pips squeak.

£100M action against Stewart Ford (Keydata) and the FSA ought to do it. Then they'll never do it again. - or rather they won't exist.

We have invested our life savings in Keydata Secure Income Plan Issue 3, and the first we knew of any problem was when our quarterly income did not appear. Keydata, FSA, FSCA, and PWC can tell us nothing. We feel cheated and extremely angry, and agree that the prime responsibility for this lies with Keydata, who did not inform us of their policies in relation to our money. Measures to compensate us must be found, as we are innocent victims of greed and criminal behaviour.

I am willing to devote time to any attempts to bring those guilty to justice and recover what is rightfully ours. We should like to talk to anyone who can give us support and advice - John and Susan Wallis.