View more on these topics

Lifemark: Stewart Ford set up LAS Global

Keydata founder Stewart Ford has confirmed that British Virgin Island firm LAS Global, which received £38m in fees from Lifemark, was set up by one of his family trusts.

Earlier this week, Money Marketing reported that over £80m in fees and commissions were paid out of Luxembourg special purpose vehicle Lifemark to Keydata and an offshore-based vehicle incorporated in the British Virgin Islands whose ownership had not been confirmed. 

Media House Internatioanl executive chairman Jack Irvine, who is investigating the circumstances surrounding the administration of Lifemark on behalf of Ford, has confirmed LASG was a company set up by a Ford family trust and was a “mechanism to collect fees”. 

LASG was paid £38m as part of an agreement giving it 10 per cent of all client funds invested in the vehicle’s life settlement bonds. 

This payment was for: “negotiating contracts for administrative parties, introducing and advising on distribution opportunities and providing support on “operational matters” related to the bonds.”   

Keydata was paid £20m in total up-front fees and £21.5m of trail commission between 2006 and 2009 with a further £29m due to be paid between 2010 and 2019.  

Keydata received an upfront 2.5 per cent commission for funds invested in the bonds and 2 per cent per annum for interest on income payable for each bond.  Keydata paid IFAs 3 per cent initial commission and 0.5 per cent trail. Over £40m in total fees and commissions were paid from Lifemark to Keydata up until 2009.

Keydata International, the offshore sales arm of Keydata was paid a 5 per cent fee of all funds invested through initial commission charges and trail.

Ford’s spokesman says information about the fees and commissions paid out of Lifemark could be accessed through public records in Luxembourg and had been disclosed to Lifemark’s auditors, PricewaterhouseCoopers Luxembourg, bondholder trustee SMP Trustees and the Luxembourg regulator, who had raised no concerns.  

He says the commissions and fees paid out from Lifemark to LAS Global and Keydata were “fully in line with comparable industry operating charges”.

Around 23,000 Keydata clients invested £349m in Lifemark through plans including the secure income bond 4, secure income plan and the defined income plan. Lifemark has halted income payments to investors to preserve liquidity and maintain the value of the policies.

It is understood that US hedge fund CarVal has advanced £3.5m to Lifemark as part of a proposed scheme of arrangement to be presented to SMP Trustees in the coming weeks.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Will someone please take responsibility with this debacle and refund clients money? Many rely on the income payments that have been stopped and there’s still no sign of this being resolved. Who was it in the UK that allowed IFA’s to use Keydata? They wouldnt have been touched with a barge pole if they had done their jobs properly.

  2. It is about time PWC & KPMG started to inform Keydata investors what is going on. Total silence from the people that are no doubt earning vast sums of money for their investigations, is nothing short of an absolute disgrace.Why are the Government and HMT saying and doing nothing. The FSCS should paying back investors money NOW

  3. my wife and i invested 19,000 pound in keydatainternal and lifemark, my question is,is there any chance of us ever geting our money back

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com