Keydata

Investors in troubled Keydata-backer Lifemark have been relegated to seventh place in the company's creditors ranking by Norwich & Peterborough (N&P) and CarVal's loan provision.

The FSCS is facing angry calls from both IFAs and investors to make its decision-making process more transparent, after two controversial judgments involving Lifemark-backed Keydata bonds and Lehman Brothers-backed NDF products.

Many cutting remarks have been made about AIFA's apparently-limp challenge to Keydata's classification as an intermediary. Now a lawyer appears to have summed them all up rather succinctly.

In the end, the long-awaited judicial review into the FSCS's decision to levy advisers for compensation costs relating to the collapse of Keydata was over in a day.

Keydata had no discretion to buy or sell bonds and so was not involved in investment management and could not be included in that FSCS sub-class for the purposes of recovering compensation costs, a court heard today.

The FSCS decided to allocate Keydata compensation claims to the investment intermediation sub-class before consulting the industry and ignored calls for a review into its decision, a court heard today.

The FSCS will ‘pre-approve' claims from eligible investors in Keydata plans backed by Lifemark despite no date being set for payouts.

NDF investors who are disputing the FSCS's ruling they are ineligible to claim compensation are still awaiting the forms to make their case.

A Yorkshire factory risks closure after an IFA put £2m of the firm's pension scheme money into failed investment company Keydata.

The FOS has ruled an IFA who put a third of a 90-year-old widow's money into Keydata while she was in a care home gave unsuitable advice.