HM Treasury insists it will not bail out Keydata Lifemark savers
Share
HM Treasury has reiterated that it will not provide a bailout for Keydata Lifemark savers, despite calls for it to deliver lifeline capital by an IFA and MP.
Financial secretary to the Treasury Mark Hoban MP will not bow to pressure to pump millions into Luxembourg-based Lifemark to keep its life settlement policies, in which 23,000 UK savers were invested via Keydata, solvent.
IFA Geoff Hartnell of Vintage Financial has reportedly gained the support of MP Zac Goldsmith to try to persuade Hoban to bail out Lifemark.
But in response a Treasury spokesperson reasserted its previous stance: “This is a matter for the Financial Services Authority, as the independent regulator, to pursue, and the Government believes that it is right that the FSA should continue its work on this issue independent of government intervention.”
In May the Treasury responded in writing to Keydata bondholders who had asked for compensation by saying it bailed out the UK’s banking system to protect people with cash on deposit and stabilise the economy, but investments are a separate issue.
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
Readers' comments (7)
Anonymous | 20 Sep 2010 4:09 pm
"A spokesperson". Elsewhere an FSA un named spokesperson made a statement that is either a lie in itself, or an accusation of Mr Collard of KPMG lying. If the FSA fail to clarify and put a name to the staff member making that statement, then they are failing in a statutoy duty to maintain market confidence....
I will post this as an IFA "spokesperson"
Unsuitable or offensive? Report this comment
Exasperated me | 20 Sep 2010 4:38 pm
"as the independent regulator", a likely story.
Unsuitable or offensive? Report this comment
Julian Stevens | 20 Sep 2010 4:55 pm
What did they expect of Mark Hoban?
The FSA is about as independent of the Treasury as the FSCS is independent of the FSA. Who does this unnamed Treasury spokesperson think s/he's fooling?
Unsuitable or offensive? Report this comment
Michael Fallas | 20 Sep 2010 4:58 pm
This just shows what a ridiculous regulatory system we have.
A regulator that is accountable to the Treasury and Government, when it chooses to be (which is as rare as hens teeth) and not accountable at all times especially to those who pay their wages and costs.
According to Mr Hoban (of the Treasury) in his letter to me he states:
"In practice, the FSA is accountable to Parliament, Government, the public and industry in a number of ways, for
example:
• The FSA is required to make an annual report to the Treasury on the discharge of
its functions and the extent to which its regulatory objectives have been met- this
report is then published;
• The FSA must hold an annual public meeting;
• The chairman and other senior directors make regular appearances before the
House of Commons Treasury Select Committee;
• The independent Practitioner and Consumer Panels, whose status is set out in the
Financial Services and Markets Act 2000 (FSMA), ensure that the views of
consumers and the industry are taken into account by the FSA the FSA is
required to respond formally to their representations;
• Complaints against the FSA may be investigated by an independent Complaints
Commissioner, whose findings are published;
• There is scope for judicial review of FSA decisions.
The last one is interesting especially with regard to Keydata, but he only says there is "scope" !!
Unsuitable or offensive? Report this comment
Evan Owen | 20 Sep 2010 5:28 pm
"scope", not really, Mr Hoban should read up on what a judicial review achieves, or not as the case may more likely be.
Was Equitable Life "a matter for the Financial Services Authority"? Yes but the taxpayer is expected to bail out those victims!
Regulation failed again, or was it the regulators?
Unsuitable or offensive? Report this comment
Anonymous | 20 Sep 2010 10:31 pm
Does anyone in these rants or these articles remember the poor soles who invested in this absolute shower.
Misguided or not they may be they need to have the decisions they made looked at. Were they misguided or were they mislead?????
And no one appears to care.
It is all very well interviewing the FSA (lies and damned lies) pass a private members bill to have them disbanded completely.
The Govt. wont support the Key Data victims (see and read for Keydata - Equitable Life).
Sue the companies/IFA's that recommended the Key Data products and Sue the body that allowed KeyData to trade.
The Victims of The KeyData collapse - appreciate this, - there is no one in a position of influence that cares about your plight.
When the writing is on the wall then read it.
Unsuitable or offensive? Report this comment
Pensioner Investor | 21 Sep 2010 0:33 am
Some people who owned The British FSA regulated company keydata collected money from the British pensioners and sent the money to some people who owned the company called Lifemark in Luxembourg. Lifemark sent money back to the U.K. to pay the pensioners their monthly income. It worked O.K. until the FSA appointed an expensive liquidator and closed the British based Keydata.
The liquidator said the investments were ring fenced but Lifemark then suddenly had cash problems and the pensioners received no income. Now the pensioners have to wait for the FSCS.
Unsuitable or offensive? Report this comment