FSCS pays bulk of Lifemark tax claims
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The Financial Services Compensation Scheme says around 9,560 tax claims relating to Keydata investments wrongly sold as Isas which were backed by troubled Luxembourg vehicle Lifemark have been offered compensation.
In its latest update, FSCS says 11,950 claims out of 13,500 have been resolved with 80 per cent offered compensation. Compensation will be paid to HM Revenue & Customs as the tax liability arises.
It expects to process all remaining claims by the end of May though it is yet to confirm whether Keydata is legally liable for losses incurred by 23,000 clients who invested £349m in Lifemark.
Hedge fund CarVal Investors is understood to have proposed a £40m loan to Lifemark to pay premiums on life insurance assets held by the Luxemburg-based vehicle and return only the original capital to investors over a 14-year timeframe depending on the performance of Lifemark assets.
FSCS has issued decisions on over 4,400 of the 5,000 Keydata clients with Isas and non-Isas in category one plans with SLS, in which £103m was misappropriated to meet the needs of deceased owner David Elias. It says 90 per cent of these decisions have resulted in compensation.
In April, the SFO said it had not identified the ultimate destination of all SLS funds but had traced “a sizeable proportion of funds.”
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Readers' comments (2)
Peter Hilton | 21 May 2010 12:52 pm
Who do these people aim these things at?
Compensation for loss of ISA status will be a big fat zero - There will be no income and no appreciation - so no TAX. And not only that - the underlying CAPITAL of 24,000 UK retired people is still seriously at risk. What we are waiting for is an announcement about that, and a recognition that this is the biggest and most disgraceful failure of the UKs Financial Regulatory system so far.
I think this self-congratulatory claptrap is very premature.
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Andrea Adderley-Wood | 23 Aug 2010 1:19 pm
I find it appalling that my provider, Norwich and Peterborough, could sell a product and then take commission whilst I have no recompense and little view of my money being returned. Plus as a pensioner I really do not need to worry like this. If you have any advise please contact me, Andrea
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