View more on these topics

FCA put 42 firms under supervision over Keydata advice, FOI reveals


The FCA put 42 firms under supervision over advice they gave to invest in collapsed life settlement company Keydata, a Freedom of Information Act request has revealed.

Only five of these firms were the subject of any enforcement action, however.

Among them were Sesame, which was fined £6m for failing to ensure the suitability of Keydata investments, AWD Chase de Vere, which was fined £560,000 for failing to research the products properly, and Norwich and Peterborough Building Society, which received a £1.4m fine, also for suitability failings.

The FCA did not provide information on how the other 37 firms were treated, except that “private warnings” were included within the supervisory work.

The regulator said information on any skilled person reviews, dawn raids or attestations – where firms agree to take an action required by the regulator – was not held in a “readily extractable format” so would breach the cost limits of the Act.

The FOI suggests the Financial Services Compensation Scheme started targeting a far greater number of IFAs than the FCA, when it went after 820 advisers who recommended Keydata-distributed life settlement products three years after the company entered liquidation in 2009.

The FCA and Keydata founder Stewart Ford are currently in the early stages of an appeal against Ford’s record £75m fine, more than 20 times the previous highest fine for a single individual by the regulator.

Keydata issued bonds through special purposes vehicles incorporated in Luxembourg. The funds raised through these were then invested in a portfolio of US life insurance policies and cash, but the company failed after incurring tax debts from mislabelling its products as having Isa status.

For a full timeline of the Keydata saga, click here



Keydata: From start to (almost) finish

Even though a judge threw out Keydata founder Stewart Ford’s £600m claim against the FCA for its role in the firm’s collapse, the maligned life settlements distributor’s seven year old battle with the regulator looks set to drag on in the appeals courts. More than £330m in compensation has been paid out over the collapse, and […]


Stewart Ford accuses FCA and FSCS of Keydata conflict of interest

Former Keydata founder Stewart Ford has accused the FCA and Financial Services Compensation Scheme of having a conflict of interest when they sued IFAs for compensation after the investment company’s collapse. In 2012, three years after Keydata entered administration, the FSCS launched legal proceedings against 820 IFAs that recommended Keydata-distributed life settlement products. The FSCS […]


Keydata founder has £600m claim against FCA struck out

A judge has struck out Keydata founder Stewart Ford’s £600m legal claim against the FCA Ford, along with former Keydata sales director Mark Owen and three Keydata related companies: – LAS Global Limited, LAS International Limited and Tandem Marketing Partners Sarl – began their case against the FCA for misfeasance in public office and conspiracy to […]

Certification guide

Guide: how to… certify your pension scheme

Certification is highly complex and surrounded by a minefield of information and auto-enrolment jargon, which can make it very difficult to understand. However, for many employers it is a necessary process that must be executed successfully.


News and expert analysis straight to your inbox

Sign up


There are 3 comments at the moment, we would love to hear your opinion too.

  1. Under supervision. After all this time? Come on! What about supervising those who were at the regulator at the time and manifestly failed in their own duties?

  2. Too Right Mr Katz.

  3. Unbelievable. I still feel bitter about being caught up in this and paying for the FCA passing the buck.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm