Keydata investors to get compensation
SAVERS who lost money through the collapse of investment firm Keydata, including many who were recommended its products by the Norwich & Peterborough Building Society, will received maximum compensation, it was announced today.
Around 19,000 people who owned Lifemark bonds from Keydata will receive a payout up to the full limit under the Financial Services Compensation Scheme (FSCS) following an investigation.
The FSCS has ruled that the bonds have no value, making investors eligible for full compensation for the first �30,000 they have lost and 90% of the next �20,000, representiing a maximum payout of �48,000.
Keydata investors were told by the FSCS in September that they would receive some compensation after the body decided that marketing material used to promote the bonds had failed to comply with Financial Services Authority rules.
Today’s announcement on the level of compesation affects customers with Lifemark Defined Income Plans issues one to eight, Income Plans issues one to 14, Secure Income Bonds issue four, and Secure Income Plans one to 14.
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The FSCS said it hoped to start making payments to investors during December, and recommended that consumers to return application forms as soon as possible.
Larger investors could still be left out of pocket as a result of the limit on FSCA payouts.
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Around 3,000 Norwich & Peterborough customers are thought to have lost sums ranging from �5,000 to �100,000 as a result of investing in Keydata bonds.
The society has received more than 600 complaints over alleged mis-selling and one group of around 260 is planning to approach the Financial Ombudsman Service which has powers to order the payment of compensation.