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Action group to fight FSCS

The Keydata Victims Action Group is rallying investors to call for a judicial review of the Financial Services Compensation Scheme’s position of not compensating non-Isa investments.

The group says the difference between an Isa and non-Isa investor is “quite simply wrong and is based on an extremely tenuous legal basis”.

It says: “We are looking for secure income bond 1-3 non-Isa investors who have had their claims rejected by the FSCS to support this activity.

This does not require any assignment of claims to redress. Under civil law, there is a finite period to lodge an appeal and given the clock is ticking we urge investors to act now.”

Advisers recently questioned the FSCS decision not to compensate non-Isa investors in some Keydata plans after pledging to pay out on other plans.

The FSCS has rejected compensation claims in non-Isa secure bonds 1-3 as it cannot establish that the apparent misappropriation of underlying assets results in a liability on Keydata’s part. Last month, the FSCS told Money Marketing it was dealing with claims on a case-by-case basis but is unable to confirm how many standalone non-Isa claims have been successful. It has paid about 3,000 Keydata claims and rejected around 130.

It said: “Although we consider it is possible Keydata breached contractual and other legal obligations owed to non-Isa investors, we cannot be sure on the evidence currently available to us that any such breaches caused a loss giving rise to a valid claim for damages.”

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  1. What I find amazing is the fact that we as the distributor are being asked to bail out clients who bought a product from a now defunct manufacturer. Does car showrooms pay a levy towards the bailouts the Government throw the way of car manufacturers.

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