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FSCS pays out £42 million to Keydata victims
by Alex Steger on May 21, 2010 at 16:12
The Financial Services Compensation Scheme (FSCS) has paid £42 million in compensation to victims of the collapse of Keydata.
Having received 5,000 claims relating to investments in the Keydata Secure Income bond issues 1, 2, and 3.
The FSCS has processed 4,400 claims, 90% of which have been successful - totalling £42 million in compensation
The Secure Income bond was issued in December 2005 as eligible for the full ISA limit despite its offer of capital protection. It became ineligible after the company failed to list the underlying bonds on which the product was built on the Luxembourg Stock Exchange.
The FSCS has also resolved 80% of the 13,500 applications it received relating to tax claims on Keydata investments sold as ISA qualifying and backed by Lifemark SA.
No money has been paid to these claimants as compensation will be paid to Her Majesty’s Revenue & Custom as the liability arises.
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2 comments so far. Why not have your say?
Harry Katz
May 21, 2010 at 16:17
I presume you mean to those victims who invested in ISAs. The other poor devils have been left to hang.
It would be helpful if you are going to report newsworthy events if you could at least be precise and accurate.
report thisPhil Castle
May 21, 2010 at 16:44
There is no precise and accurate coming out of any of the F-pack nor PWC in order for a journalist or anyone to give any definate statement.
Some serious lessons need to be learnt, not just with regard how the FSCS levy groups are structured, but also on disaster planning and "wargaming" so that if something like this occurs, a clear route has already been established as to where responsibility for each
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