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Regulatory Legal issues FSCS warning over Keydata

A law firm representing Keydata investors has issued a warning to the Financial Service Compensation Scheme, ahead of its decision on compensation for the investors expected to be announced next week.

Regulatory Legal partner Gareth Fatchett says the firm will launch a judicial review if the FSCS does not issue a detailed explanation of its reasonings alongside its decision over whether to provide compensation to Keydata investors in Lifemark bonds.

It is expected to announced that it will not offer compensation because Lifemark is not based in the UK and investors’ losses cannot yet be quantified.

Around 23,000 UK savers who invested £350m with Keydata that was passed to Luxembourg-based Lifemark – which continues to teeter on the brink of insolvency – are awaiting the decision next week.

Fatchett says: “Be under no illusion, if the FSCS reach a decision which is unclear, overly restrictive or capable of being argued as wrong then it will challenged by judicial review. What will be entirely unhelpful is if the investors are provided a bland decision lacking technical detail. It is for that reason we have sought their early assurance that a properly reasoned decision will be provided.”


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There are 2 comments at the moment, we would love to hear your opinion too.

  1. We bought a UK Keydata plan in the UK from a UK IFA. Both Keydata and the IFA were authorised and regulated by the FSA. Nowhere in any brochure, promotional material or correspondence was the word LIfemark ever mentioned. Now we may be told by the FSCS that we have an overseas investment and they won’t even consider a claim.

  2. Where would we be without all that regulation paperwork? I wonder what the pileometer reading is today.

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