N&P still 'actively engaged' in Keydata resolution

The building society is rumoured to be in talks to front a £13m - £20m loan to stave off the liquidation of Lifemark, the cash-strapped Luxembourg-based fund which backed Keydata bonds sold by N&P.

Convincing investors to stay in a rescued Lifemark would be a cheaper option for the building society as N&P's CEO Matthew Bullock has admitted the company faces compensation costs of up to £50m. This is because of claims it mis-sold Keydata products to some of the 3,100 clients who invested on advice from N&P IFAs.

Dated last Thursday, the letter from Bullock says:"We are actively and productively engaged in discussions with a number of relevant parties (including members of the regulatory community) with a view to seeking a resolution to the Keydata situation."

An N&P spokesperson says the building society is not yet in a position to be more specific about the shape of a "resolution".

"Until we overcome the obstacles in the way of that resolution we can't say what it is," she says.

A group of about 300 N&P customers are preparing a class action against the building society through the Financial Ombudsman Service (FOS). They claim its IFAs failed to explain the risks involved with the Keydata investments, and overexposed customers to the products.

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• Topics
• Investment
• Norwich and Peterborough
• Keydata