Will N&P's Keydata payout set a precedent?

Laura Miller
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Norwich & Peterborough (N&P) building society has set aside a massive £57m to cover the cost of compensating customers its IFAs invested in failed investment firm Keydata.

N&P’s capitulation, welcomed by investors in Keydata-backer Lifemark after a year of denials of wrong-doing, will put pressure on other firms to fall on their swords. AWD Chase de Vere, Positive Solutions and Sesame all have significant client exposure to Lifemark, I understand. But all advisers need to consider the implications of this under-the-table deal. Frustrated investors everywhere will now expect an N&P-style payout – where even customers who haven’t complained will get their money back. They will look to the FSA and the FSCS to agree elsewhere the same calculation of payments i...

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