HM Treasury insists it will not bail out Keydata Lifemark savers

HM Treasury has reiterated that it will not provide a bailout for Keydata Lifemark savers, despite calls for it to deliver lifeline capital by an IFA and MP.

Financial secretary to the Treasury Mark Hoban MP will not bow to pressure to pump millions into Luxembourg-based Lifemark to keep its life settlement policies, in which 23,000 UK savers were invested via Keydata, solvent.

IFA Geoff Hartnell of Vintage Financial has reportedly gained the support of MP Zac Goldsmith to try to persuade Hoban to bail out Lifemark.

But in response a Treasury spokesperson reasserted its previous stance: “This is a matter for the Financial Services Authority, as the independent regulator, to pursue, and the Government believes that it is right that the FSA should continue its work on this issue independent of government intervention.”

In May the Treasury responded in writing to Keydata bondholders who had asked for compensation by saying it bailed out the UK’s banking system to protect people with cash on deposit and stabilise the economy, but investments are a separate issue.

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Comments

There are 7 comments at the moment, we would love to hear your opinion too.

  1. “A spokesperson”. Elsewhere an FSA un named spokesperson made a statement that is either a lie in itself, or an accusation of Mr Collard of KPMG lying. If the FSA fail to clarify and put a name to the staff member making that statement, then they are failing in a statutoy duty to maintain market confidence….
    I will post this as an IFA “spokesperson”

  2. “as the independent regulator”, a likely story.

  3. What did they expect of Mark Hoban?

    The FSA is about as independent of the Treasury as the FSCS is independent of the FSA. Who does this unnamed Treasury spokesperson think s/he’s fooling?

  4. This just shows what a ridiculous regulatory system we have.

    A regulator that is accountable to the Treasury and Government, when it chooses to be (which is as rare as hens teeth) and not accountable at all times especially to those who pay their wages and costs.

    According to Mr Hoban (of the Treasury) in his letter to me he states:

    “In practice, the FSA is accountable to Parliament, Government, the public and industry in a number of ways, for
    example:

    • The FSA is required to make an annual report to the Treasury on the discharge of
    its functions and the extent to which its regulatory objectives have been met- this
    report is then published;

    • The FSA must hold an annual public meeting;

    • The chairman and other senior directors make regular appearances before the
    House of Commons Treasury Select Committee;

    • The independent Practitioner and Consumer Panels, whose status is set out in the
    Financial Services and Markets Act 2000 (FSMA), ensure that the views of
    consumers and the industry are taken into account by the FSA the FSA is
    required to respond formally to their representations;

    • Complaints against the FSA may be investigated by an independent Complaints
    Commissioner, whose findings are published;

    • There is scope for judicial review of FSA decisions.

    The last one is interesting especially with regard to Keydata, but he only says there is “scope” !!

  5. “scope”, not really, Mr Hoban should read up on what a judicial review achieves, or not as the case may more likely be.

    Was Equitable Life “a matter for the Financial Services Authority”? Yes but the taxpayer is expected to bail out those victims!

    Regulation failed again, or was it the regulators?

  6. Does anyone in these rants or these articles remember the poor soles who invested in this absolute shower.

    Misguided or not they may be they need to have the decisions they made looked at. Were they misguided or were they mislead?????

    And no one appears to care.

    It is all very well interviewing the FSA (lies and damned lies) pass a private members bill to have them disbanded completely.

    The Govt. wont support the Key Data victims (see and read for Keydata – Equitable Life).

    Sue the companies/IFA’s that recommended the Key Data products and Sue the body that allowed KeyData to trade.

    The Victims of The KeyData collapse – appreciate this, – there is no one in a position of influence that cares about your plight.

    When the writing is on the wall then read it.

  7. Pensioner Investor 21st September 2010 at 12:33 am

    Some people who owned The British FSA regulated company keydata collected money from the British pensioners and sent the money to some people who owned the company called Lifemark in Luxembourg. Lifemark sent money back to the U.K. to pay the pensioners their monthly income. It worked O.K. until the FSA appointed an expensive liquidator and closed the British based Keydata.
    The liquidator said the investments were ring fenced but Lifemark then suddenly had cash problems and the pensioners received no income. Now the pensioners have to wait for the FSCS.

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