A group of Lifemark-backed Keydata bond investors are renewing their efforts to organise a public inquiry into the collapse of the investment scheme nearly five years ago, by lobbying their MPs to act.
Keydata was put into administration by the then regulator the Financial Services Authority (FSA) in June 2009 due to liquidity problems after about £300m had been invested in second-hand traded life policies.
The Lifemark Bondholder's Action group wants a formal investigation into what they call the "clumsy" way the FSA handled the failure.
Peter Hilton, an investor and the group's leader, is calling on investors to write to their MPs to "remind them of the Keydata affair and the effect it has had on you".
"After four and a half years we have no answers as to why the FSA went about bringing down Keydata and Lifemark in the clumsy way it did," he said.
In 2011 the Treasury rejected calls for it to conduct an independent Keydata inquiry before the FSA's own investigation into the scandal is completed.
This investigation - which Hilton has branded "grossly incompetent" - is still ongoing, and is now being undertaken by the new regulator the Financial Conduct Authority (FCA).
The FCA said in July that it was "taking steps to restart disciplinary proceedings against [Keydata founder] Stewart Ford and Keydata", after Ford' application to appeal a court decision to allow the regulator to use certain documents to build its case against him was turned down.
The Serious Fraud Office and the Luxembourg authorities have decided that they do not intend to take any action against the directors of Keydata and or Lifemark.
Hilton said there are a number of complaints about the handling of the Keydata debacle that have been lodged with the FSA and FCA, but that complainants have been told these can not be responded to until the regulator's investigation is completed.
"It would be helpful - no - essential - for our efforts to achieve [a Parliamentary inquiry] if there were to be a large number of MP's on all sides of the political spectrum reminded of the Keydata fiasco, the failure of the FSA/FCA to protect our interests or to bring anyone to book, and the impact these failures have had on their constituents," Hilton said.
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