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Keydata Lifemark clients fear waiting years for cash

Keydata Lifemark investors have met with the FSA, Financial Services Compensation Scheme and administrators to express concern that they may not receive compensation for several years.

The FSCS will decide next month if Lifemark clients will be able to claim for compensation.

Around 23,000 Keydata clients invested £349m in Lifemark, which is in administration and has suspended payments to bondholders to preserve capital.

The future of the investment vehicle is in doubt, with US hedge fund CarVal still in talks to provide Lifemark with a £40m loan despite reports that talks had broken down.

At a meeting last Friday at the offices of Keydata administrator PricewaterhouseCoopers, investors and advisers met with representatives from the FSA, FSCS and Lifemark administrator KPMG Luxemburg.

Investors are concerned that even if the FSCS decides that compensation could be due, they could be left unable to claim for years as it is not possible to assign a fixed value to their assets.

The investors at the meeting argued that potential losses from Lifemark have been caused by the failings of Keydata management. Keydata founder Stewart Ford has claimed that the FSA’s decision to put Keydata into administration in June 2009 caused Lifemark’s liquid-ity problems.

In April this year, the Serious Fraud Office widened its Keydata probe to investigate the activities, control and ownership of Lifemark.

Investors at the meeting called on the FSCS to offer investors their money back up to the current FSCS limit.

Vintage Financial director Geoff Hartnell, who attended the meeting, says the FSCS should repay investors’ initial investments and then chase Lifemark for the recovery of this money.

“Once the FSCS steps in place of the investors, they will assume their position and chase recovery,” he says.



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There are 8 comments at the moment, we would love to hear your opinion too.

  1. This would be a great step in the right direction, but it would still leave investors with more than £48,000 invested short. I had my entire pension fund, of £71,000 invested, and now I have no pension, and no fund with which to buy another pension. It’s a Lose Lose situation all the way for me, and many others like me!

  2. Sorry to hear of your plight, TT, but what (or who) on earth led you to invest your entire pension fund with just one provider, not least a not particularly big, strong or mainstream one like KeyData?

  3. Dr Surjit S Bhalla 6th August 2010 at 2:59 pm

    Hello Friends

    The Fight is still on.



  4. If it is true, it is great news, especially for the FSCS. By the time they start paying, many, if not most, of the Keydata investors will be dead.

  5. TT, sorry to hear that. JS – with 70K I wouldn’t have spread it around, but agree wouldn’t have gone near KeyD

  6. Position on 30 June 2009 all Lifemark clients paid their income on time, every time with no problems. PwC the administrators of Keydata have confirmed that all the Lifemark assets are secure. The Luxembourg regulator of Lifemark has just approved the prospectus for bonds to be issued. Presumably nothing to worry about. Then one call from the FSA. Fast forward fourteen months with the FSA have dictated the agenda, what an outcome….but never mind there is always the FSCS

  7. Tony,
    That is terrible and I really feel for you, but who in their right mind would tell you to put 100% of your pension into a life settlement fund, I would be having serious words with your IFa if I were you

  8. A lot of little people were persuaded to put their lifesavings into this shower by Norwich & Peterborough B.S. They were told it was just like a 5 year fixed term BS bond.Completely unsuitable!

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