Ford is granted judicial review of FSA Keydata investigation
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Keydata founder Stewart Ford has secured a judicial review into the way the FSA has carried out its investigation into the investment company.
Ford applied for the judicial review in March, which was granted in the same month.
Since then, Ford and the FSA have made submissions to the Royal Courts of Justice in London to finalise what the judicial review will examine. The hearing will take place in July.
The FSA first began investigating Keydata in December 2007 and says its investigation is at an advanced stage.
Ford says: “I have applied to the High Court for a judicial review of certain aspects of the FSA’s investigation into Keydata and my role at the company. I made this application because of my serious concern about the way the FSA conducted its investigation into Keydata and I believe it should be held publicly accountable for its illegal conduct.”
The FSA confirmed Ford has launched a judicial review against the regulator but says it cannot comment further.
Keydata was put into administration in June 2009 and in November 2009, the Financial Services Compensation Scheme declared the firm in default.
Claims relating to Keydata have triggered FSCS levies for 2010/11 of £326m, with advisers having to pay £93m and fund managers £233m. Claims relating to SLS Capital made up the majority of an £80m FSCS levy for 2009/10.
Earlier this month, the Serious Fraud Office dropped its investigation into Keydata, citing insufficient evidence to secure a prosecution.
Philip J Milton & Company managing director Philip Milton says: “I do not know if Ford is guilty of wrongdoing or not but if he is innocent, the FSA should be challenged as it is the FSA’s actions that caused the company to implode.”
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