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.