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Stewart Ford slams FSA for sending Keydata report to wrong address

Keydata founder Stewart Ford has lodged a complaint with the FSA alleging that the regulator delivered his confidential copy of the Keydata preliminary investigation report to his ex-wife.

The complaint, seen by Money Marketing, claims that in August the FSA delivered a 5,000-page package of sensitive documents, held on unencrypted discs, to Ford’s ex-wife in Glasgow.

Ford says a separate copy was also sent to his lawyers.

He says: “This is incompetence beyond belief, especially as the regulator knew to deal with my lawyers and had my Swiss address. The implications of what the FSA has done are significant.”

An FSA spokeswoman says the FSA does not comment on the individual complaints it receives.

Money Marketing revealed last month that the FSA had come under attack from the Complaints Commissioner for the way in which it delivered its preliminary investigation reports to Keydata director Mark Owen and head of compliance Peter Johnson in August.

Ford has launched judicial review proceedings against the FSA over the way it carried out its investigation into Keydata, which will be heard at the High Court in London on July 21.

The FSA began investigating Keydata in December 2007 and says its investigation is at an advanced stage.

Keydata was put into administration in June 2009, with complaints relating to Keydata triggering an interim Financial Services Compensation Scheme levy of £326m in January this year.

In April, the Serious Fraud Office announced it had dropped its investigation into Keydata, citing a lack of evidence.

A statement on the SFO website says the SFO is continuing in its attempts to trace the £100m assets invested in Luxemburg-based vehicle SLS Capital and will provide a further update in July.


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There are 18 comments at the moment, we would love to hear your opinion too.

  1. Patrick Schan 9th June 2011 at 9:49 am

    How many times do we read “An FSA spokeswoman says the FSA does not comment”.
    This is an unbelievable organisation.
    This is supposed to be a democracy; a free country with freedom of information. The government is a disgrace for allowing this to go on.

  2. I am shocked, shocked to find there is incompetence at the FSA!

    (From Casablanca: Captain Renault: I’m shocked, shocked to find that gambling is going on in here!
    [a croupier hands Renault a pile of money] )

  3. The FSA have a well-earned reputation for stupidity and incompetence.

    Perhaps that’s why there is nothing further for their Spokeswoman to comment on?

  4. So if I receive a complaint from a client (which I never have like many IFA s) all I have to say to the FSA is I do not comment! Or is it one rule for the FSA and one for everybody else? Sadly I think the latter is true.

  5. If an authorised firm had sent sensitive data to the wrong address, how many millions would the FSA have fined them? Are they going to take disciplinary action and fine themselves???

  6. Have you never heard the response

    ‘Do as I say not as I do’

    This years ‘Hippo of the year award” to be presented to Mr Sants et al!

    With the recent salary information, Hungry Hippos seems to sum them all up quite nicely in more ways than one.

  7. The FSA does not thrive on incompetence by chance.
    It takes Poor preparation and unaccountability, as displayed by Messrs Saints and Nichols at the treasury select committee
    ( Providing evidence) to set the bar this low.

    If you breed Whippets you can’t expect a Greyhound!

  8. Exasperated me 9th June 2011 at 11:08 am

    Can you imagine trying to pin something on an eel? An eel that has multiple places of residence, a murky pond, a sewage pipe. It will wriggle and wriggle until you chop its head off and even then it will wriggle some more.

  9. To: Exasperated me.

    I have no idea what you are talking about, but I do wonder about how you spend your spare time 🙂

  10. So to summarise they had 3 warning notices to send out at the same time and they managed to mess every one of them up. Thank god that do not deal with clients, however it is unfortunate they have to deal with the industry.

    They should be fining themselves for this incomeptence

  11. Why is anyone surprised, they are the untouchables who can destroy our lives without being held liable for their actions.
    Come the revolution…..;0)

  12. And yet no-one pauses to consider the FSA might have been correct? Most of us have dealt with unfounded complaints before haven’t we?

    Perhaps best to wait until the facts are known before judging.

    Where is Mr Ford’s legally residing? His address on the electoral register, or credit card billing address etc… etc… There are normally processes to be followed for notifying change address or instructions for communications.

    If the FSA failed then Mr Ford certainly has a valid complaint, but none of us know enough either way.

  13. Can the FSA spokesperson confirm that someone will be disciplined for these oversights, even if they are not fined?
    If not, why not. They don’t have to confirm who (as that would breach their Human Rights, but Ed Balls was quite happy to do that with the Social Workers case)
    One rule for the elite, and another for the rest of us.

    As Rod says, come the revolution 😉

  14. This organisation appears to have a culture of incompetancy, making one mistake after the other and then never seem to want to accept responsibility for their mistakes passing the buck from one person to the next. It is laughable that these so called professionals are allowed to regulate financial services and do not seem to be accountable for their actions. The politicians our so called representatives turn a blind eye to their behaviour as they don’t want to be blamed if anything goes wrong. What a joke!

  15. Thank heavens they don’t send out cheques (or do they?) Instead of “Its in the post” it would be “Its lost, er, somewhere! Oh no, we sent it to that general guy in North Africa . . . but its all right cos we’ll just deny it”.

    What a bunch of no-users, how long will it be before our illustrious Prime Minister realises that the FSA’s and Sants inadequacies reflect on him and on the industry they are supposed to regulate. An in depth Independent Investigation is long overdue.

  16. Wow, good to see censorship in action, when my “let’s consider both sides of the story & wait until the facts our out before judging” comment has not appeared…

    Obviously not castigating the FSA strongly enough!!!

  17. Lets consider both sides of the argument? Isn’t that the point! The FSA refuses to comment (of course unless its a leak) so we never find out the other side of the argument. They should and will eventually have to comment in front of a proper independant commitee

  18. Lets consider both sides? Thats the point, the FSA do not comment (unless of course they leak information) so we do not get both sides of the argument. They are quick enough to call into question the integrity of certain individuals but refuse to comment when they mess it up. Hopefully soon they will be forced to comment in front of an independant committee

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