It has not decided whether to pursue litigation against Keydata directors, auditors or the custodian of assets placed with Luxemburg investment vehicle SLS Capital which could affect the return to investors. Joint administrator and partner Dan Schwarzmann says, based on Keydata’s current balance sheets and liabilities, it is unlikely that creditors will recover much money.
A Keydata creditors’ committee will decide with PwC what legal action is worth pursuing on a cost-benefit basis.
Schwarzmann says: “On SLS, there are some actions the company will be able to take and some the investors will have to take. But without the decision on possible litigation having been made, the dividend prospects for creditors look poor.”
PwC has made no further progress in locating missing SLS policies, in which around 5,500 individuals are invested.
The FSCS says it is too early to say whether it has a role to play.
PwC recently learned that a few hundred clients have not been properly invested in Keydata plans due to administrative errors.