At the end of last week clients invested in the Keydata extra income plan 21 were still waiting for their income payments to be released days after they were due.
Income due to be released on June 5 would have typically needed five working days to be processed by Keydata before being paid around the date of June 12 but these payments had still not been released to clients.
In an update on June 18 on the status of income payments PwC said: “The processing of income on KIS products remains suspended while the administrators continue their examination of KIS’s operations and consider a sale of the business.
“The processing of income has resumed for products where KIS is purely administering the contract on behalf of a third party.”
A day earlier a PwC spokeswoman said: “We said in one of our statements last week that we were beginning to process again but there were going to be delays in income payments. We are working as hard as we can to get everything moving again but there is going to be a bit of delay and I don’t know how long it is.”
But Lowes Financial Management managing director Ian Lowes said he was told investors awaiting income payments for the Keydata extra income plan 21 were not “a priority” but a sale of the business was.
Last Tuesday PwC said it had shortlisted firms in the race for Keydata business to “a handful”.
Today it said a completed sale had been expected at the end of last week but there had been a slight lag and it was still talking to interested parties and was looking to provide a further update this week.
According to Lowes, the money has been paid by the relevant institutions and most of Keydata’s income contracts, bar the secured income bonds, do not have a question mark over them and therefore should be processed.
He says: “They have put a hold on the process but have failed to communicate this properly and left elderly people who are reliant on that income in the dark.
“On the day the administration was announced there was no indication of a suspension of income payments for KIS plans to advisers other than perhaps a day or two. What happens to treating customers fairly? Does that go out the window? Being an administrator is not just about selling the company, it is about running the company.”
Speaking today, a PwC spokeswoman says: “We have our insolvency experts concentrating on keeping the business running but we have our corporate finance team concentrating on the sale of the business so we can do both as we can pull in people from across the firm to help.
“The sale is important because that will give some real security and finality but both functions are equally as important.”
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