Keydata has defended itself against claims it deliberately 'misled' investors about which groups backed the SLS bonds marketed to advisers.
A spokesperson for Keydata founder Stewart Ford said Keydata was just repeating false claims by the global distributor of the SLS asset-backed bonds that KPMG and HSBC were involved in the investments.
Many investors in the failed product provider said they trusted their savings to the SLS bonds because of their connection to the two household name companies.
However, KPMG says it told the FSA in October 2005 it had not been "associated in any way" with the services referred to in Keydata's marketing literature.
HSBC also confirmed the statements made by Keydata about the bank's involvement in the investment vehicle were "misleading and therefore inaccurate".
Keydata founder Stewart Ford has recently resurfaced after months of silence over the failure of his company which has left 30,000 UK investors fighting to recover £450m.
Jack Irvine, a public relations and crisis management consultant acting for Stewart Ford, says the incorrect information on KPMG and HSBC was the fault of BWT Holdings, the global distributor of the SLS asset-backed bonds.
"Keydata's marketing literature did no more than repeat the claims previously made in marketing literature distributed by BWT Holdings as the global distributor of the SLS asset-backed bonds on behalf of the relevant counterparties, including CRT Capital, then part of the Sheffield Merchant Banking Group."
He says the BWT Holdings' marketing literature was shown to Keydata in May 2005, before it started a due diligence process into whether it should also market SLS bonds.
Irvine says: "As part of that subsequent due diligence process Keydata received assurances the representations made in BWT Holdings' marketing literature were correct."
Keydata also did not intend to mislead customers over the ISA status of the investments, he says.
"There was no intention to mislead customers. It was Keydata's understanding these investments would qualify as ISAs provided they were listed on the relevant exchange within the term of the bonds.
"This was a view shared by others within the industry. Compliance with the ISA regulations is ultimately a matter of legal interpretation. Insofar as we are aware, there is yet to be a decided case on this point."
He says Ford would have discussed the interpretation of ISA regulations with HMRC had the FSA not forced Keydata into administration.
"This FSA intervention prevented the then management of Keydata pursuing those discussions and resolving the ISA issue with HMRC," he says.
Irvine also denies anyone at Keydata knew David Elias, who was passed control of SLS in Luxembourg, was either a fugitive or a bankrupt when they first met him in 2005.
The £103m entrusted to Elias on behalf of 5,500 Keydata investors has since disappeared.
However, IFA Peter Magowan, who has client caught up in the Keydata debacle, says even the most basic due diligence at the firm would have picked up Elias' past.
"What due diligence did Ford do on David Elias?
"Did it even stretch to a Google search which would have said he was a fugitive from British justice?"
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