Keydata: Lifemark investors to be paid out in full - Investments - News - Moneyfacts

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Keydata: Lifemark investors to be paid out in full

Keydata: Lifemark investors to be paid out in full

Category: Investments

Updated: 03/12/2010
First Published: 02/12/2010

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People who invested in Keydata investments backed by Lifemark are set to be refunded in full after it was judged their holdings are worthless.

Keydata customers who invested in Luxemburg firm Lifemark will be fully recompensated up to the Financial Services Compensation Scheme's (FSCS) limit of £48,000.

This is because an investigation into the Lifemark bonds by the FSCS found that the investments 'have no value'.

The FSCS limits for investments cover 100% of the first £30,000 of financial loss and 90% of the next £20,000 per person.

It is estimated that around 19,000 people are affected, with a total investment of about £350 million.

"Compensation payable to eligible investors will not, therefore, be reduced to take account of an amount representing a value for the bonds," said the FSCS.

Investors were invited to register claims in September and the first payments will be made this month.

Posting on a forum for Keydata victims, one contributor described the ruling as 'great news', adding that the decision to fully pay out was 'a major victory for common sense'.

Advising those affected, the FSCS issued the following advice: "We encourage all investors who have been sent an FSCS application form to complete it and return it to us as soon as possible. This will allow us to determine whether or not their claim is eligible and to pay compensation accordingly.

"If any Lifemark investor who dealt with Keydata has not yet received an application form, they should contact our Customer Services Team on 0800 678 1100 or 020 7892 7300, or email us at enquiries@fscs.org.uk."

Earlier this year, other investors that bought bonds via Keydata from another Luxembourg company, SLS, were offered compensation by the FSCS.

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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