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FSCS to provide Keydata update by November

The Financial Services Compensation Scheme is to provide an update by November on whether it will be able to step in to help Keydata investors who have incurred losses.

In an update today, the FSCS says it is now at an advanced stage of its investigations and analysis into issues arising out of the administration of Keydata, with a view to confirming its involvement in compensating investors with claims against the firm.

However, it says there are still several complicated legal issues surrounding the firm and as such it has engaged external experts to assist.

It is focusing on potential claims relating to Keydata secure income bond issues 1, 2 and 3 where shortfalls have been confirmed by the administrators and is exploring whether any losses were caused by Keydata.

It is also reviewing the potential tax liabilities arising from the Keydata investments that were incorrectly promoted as Isas.

It says: “Although we are not able to say at this time when we will be in a position to confirm whether we are able to step in to help Keydata investors, we will provide investors with further updates on significant developments as they occur. We currently anticipate being able to confirm whether or not we are likely to be able to help in November, if not before.”

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  1. Keydata
    The FSCS do not say which November!

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