FSA probes Keydata advisers
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The FSA is writing to a number of firms who sold Keydata products as part of an investigation into how the investment products were sold.
The regulator is writing to Keydata distributors who sold the Keydata Secured Income Bond and the Keydata Defined Income Plan between July 2005 and June 2009.
The FSA would not reveal the number of advisers it has written to or the number of clients involved.
Advisers are being asked to provide client details, investment amounts and details surrounding the product sale.
An FSA spokeswoman says: “I can confirm we are writing to advisers as part of a supervisory assessment of how Keydata products were sold to UK customers.”
Money Marketing revealed in April that the Financial Services Compensation Scheme is pursuing a number of firms for recoveries for Keydata claims to recoup some of the compensation it has already paid out.
Norwich & Peterborough Building Society, the biggest distributor of Keydata products, was fined £1.4m by the FSA last month. N&P also agreed to pay £51m in investor compensation, of which £28m will be repaid to the FSCS.
AWD Chase de Vere, another Keydata distributor, has upheld at least eight complaints over the way it sold Keydata products.
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Readers' comments (4)
Exasperated Me | 12 May 2011 1:49 pm
Is it six years since the FSA became aware of problems at Keydata?
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Chris F | 12 May 2011 2:32 pm
to: exasperated me.
No, it is about a week since the FSA decided to try to offload the blame for its own failings to advisers and a few years since they became aware of the fact that they can judge everything in hindsight and with 20:20 vision to boot...
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Paul Nash | 13 May 2011 5:39 pm
It looks like the advisers will now be able to probe the FSA? Especially in view of the Judicial Review, which will now take place in July.
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Julian Stevens | 15 May 2011 12:43 pm
Why won't the FSA "reveal the number of advisers it has written to or the number of clients involved"? It claims on its website to be "an open and transparent regulator" yet the list of actions or non-actions that contradict this claim grows ever longer.
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