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FSCS to pay full Lifemark compensation up to £48K from December

The Financial Services Compensation Scheme has announced it will fully compensate Keydata Lifemark investors up to the £48,000 limit, with payments starting in December.

The FSCS says it is “satisfied” that Lifemark’s portfolio of traded life settlements have no value as far as its efforts to quantify the claims of Lifemark investors are concerned.

It says: “Compensation payable to eligible investors will not, therefore, be reduced to take account of an amount representing a value for the bonds.

“This means that the FSCS can now quantify claims and pay compensation to those investors who are eligible under our rules, subject to the compensation limit.”

It encourages all Keydata Lifemark investors to submit claims as soon as possible.

Around £349m was invested in Lifemark through Keydata. FSCS claims are likely to be paid for by the intermediary sub-class. If the sub-class is hit with claims for more than £100m in one year, April to March, then any further claims will be paid for by the investment provider sub-class up to a total limit for the investment class of £370m. Any further claims in one year will be paid for by the general retail pool.

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