Around 85,000 savers who hold Keydata Investment Services' capital protected investment plans have been reassured their money is safe, according to The Daily Telegraph.
Keydata was declared insolvent by the FSA on Monday after at least a dozen ISA plans were found to be non-compliant, leading to a tax liability of around £5m, which the company was unable to meet.
"Based on our preliminary investigations it would seem that investors' money is held securely by Keydata in segregated accounts," says Dan Schwarzmann, an administrator at PwC.
"We hope to be able to confirm as soon as possible that customers' funds are secure."
However, he adds those investors in plans which do not comply with ISA regulations could lose the tax relief they were expecting.
The non-compliant plans are: Secure Income Bonds 1, 2 and 3 and Defined Income Plans 1 to 8.
To meet ISA criteria, the plans had to invest in recognised investments but some in question were listed on the Luxembourg Stock Exchange and invested in US life insurance contracts.IFAonline
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