The FSCS says it can now quantify claims against Keydata-backer Lifemark and will start paying out compensation to investors from next month.
Following an investigation into the valuation of the Lifemark bonds, the FSCS says it is now satisfied these bonds have no value for the FSCS in quantifying the claims of individual Lifemark investors.
Compensation payable to eligible investors will not, therefore, be reduced to take account of an amount representing a value for the bonds.
The FSCS says it can now quantify claims and pay compensation to those investors who are eligible under its rules, subject to the compensation limit.
The limit for investment claims against Keydata is £48,000 (100% of the first £30,000 of financial loss suffered and 90% of the next £20,000, per person).
"We expect to start making compensation payments during December", it says.
A spokesperson for Norwich and Peterborough Building Society (N&PBS) says it welcomes the FSCS announcement.
"N&P has worked for many months with all parties to reach a resolution for its 3,100 Keydata investors and is pleased that the announcement will provide positive news for many of these investors."
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