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Blue Sky says investors are safe from KeyData losses

Blue Sky Asset Management, the structured investment provider, announced today it does not believe investors in its plans would incur any losses following the Financial Services Authority’s move to put KeyData Investment Services (KIS) into administration.

In a statement Blue Sky said while all of its plans are administered through KIS the assets of its clients are held through a separate corporate entity, KeyData Product Nominees Limited. Unlike KIS, the latter company cannot itself become insolvent as it has “no liabilities, staff costs, cash flow or trading activity”.

Blue Sky also says the underlying securities in its products are bought from issuing counterparties and the risk therefore does not lie with KIS but with the solvency of the issuers.

The need to reassure investors demonstrates the level of concern and surprise in the market following the revelation of KeyData’s insolvency. PricewaterhouseCoopers, the designated administrator of the company, said yesterday that it was facing a “complex situation” but it would aim to confirm whether investors’ money was at risk within 24 hours.


OECD unemployment rises

Unemployment in the Organisation for Economic Co-Operation and Development (OECD) area rose 2.2 percentage points over the past year to April 2009, according to the OECD.In April 2009 the unemployment rate for the OECD area was 7.8%. This is 0.1 percentage points higher than the previous month and 2.2 percentage points higher than in April […]

Is three a crowd?

The pension versus Isa debate has raged on and off for years. Les Cameron, head of technical at Prudential, asks if three’s a crowd.   I think the debate was arguably settled by pensions freedom when the biggest downside of pensions – limited access and poor death benefits – was fundamentally changed. Total access, albeit with […]


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