IFA warns Keydata victims 'don't set hopes' on FSCS challenge

Laura Miller
clock

An IFA caught up in the Keydata debacle is urging investors not to pin all their hopes on a judicial review into the failed investment vehicle.

Andrew Swallow says demands from the Keydata Victims Action Group for a review into the FSCS's decision not to pay out to investors in non-ISA Keydata products SIB1-3 are "laudable in principle". But he cautions investors against "getting their hopes up" and for IFAs to remember who pays the bill if the challenge is successful. "A jaundiced person might suggest the only people who will get any money out of this will be the lawyers," he says. Last month, the FSCS said it "anticipates" only Keydata investors who invested money via ISAs will be eligible for compensation. The FSCS s...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FOS award limits increase for next financial year

FOS award limits increase for next financial year

One type of complaint sees a £10,000 rise

Sophia Panayi
clock 01 April 2026 • 1 min read
FOS increases fees for the first time in two years

FOS increases fees for the first time in two years

New fees effective from 1 April

Sophia Panayi
clock 01 April 2026 • 2 min read
FOS ten-year limit sparks adviser concerns over complaint exceptions

FOS ten-year limit sparks adviser concerns over complaint exceptions

Parliamentary scrutiny predicted

Sophia Panayi
clock 31 March 2026 • 4 min read