Seymour Sinclair Investments Limited (Est 1985)
KEYDATA NEWS - 0118 925 5933
HomeWhy Use Seymour Sinclair InvestmentsHow to Make an InvestmentISA - Unit Trust - Discount ListISA RulesFund Performance InformationFUNDSNETWORK - Fund Supermarket - Make an investment todayFUNDSNETWORK - Re-RegistrationISA Transfer GuideNewslettersStructured Income and Growth PlansIncome and Growth Bonds ExplainedInsurance BondsFinancial Planning IdeasGuaranteed Income / Growth Bonds - The Best RatesMoney Laundering RulesTerms of BusinessKEYDATA NEWS

FOR NEWS ON KEYDATA TELEPHONE THEM ON 0118 925 5933

On 1 February 2010 the Luxembourg financial services regulator, the Commission de Surveillance du Secteur Financier (the CSSF) suspended the securities issued by Lifemark S.A. (Lifemark) from trading on the Luxembourg Stock Exchange.

The CSSF is considering a proposal from Lifemark, submitted on 31 January 2010, to restructure its debt and change the terms and conditions of the existing Lifemark bonds to zero coupon bonds, so they would no longer carry an entitlement to receive interest.

Lifemark's bonds underpin a number of retail investment products provided and administered by the UK company, Keydata Investment Services Limited (Keydata), to UK consumers.

This proposal is subject to the approval of the CSSF which will consider whether the proposal will ensure that investors' monies are recovered or whether it would be in their best interests to pursue liquidation under Luxembourg securitsation law.

Keydata was placed into administration by the Financial Services Authority (FSA) on 8 June 2009 due to substantial tax liabilities arising from irregularities with its products. The investors in these Keydata products are the ultimate beneficial owners of the majority of the bonds issued by Lifemark.

The CSSF and the FSA are working together in close cooperation in this matter. Further updates will be published on the FSA website.

For more information see the CSSF announcement.

KEYDATA HAS BEEN DECLARED IN DEFAULT BY FINANCIAL SERVICES COMPENSATION SCHEME (FSCS) 13 November 2009

Keydata Declared In Default - **Click Here** For Full Details

**Click Here** To Go To Pricewaterhouse Cooper Web Page on Keydata News

I am writing to you with regard to the severe problems that have surfaced at Keydata Investment Services Ltd and to explain as best I can how it will affect your investment(s).

As you are no doubt aware from press comment, the company was forced into administration on June 8 by the UK financial regulator, the Financial Services Authority. PriceWaterhouseCoopers was  appointed as administrator and Keydata was declared “insolvent”.

What has now been revealed, helps us understand the FSA’s concerns. PwC have announced they are “unable to satisfy themselves as to the safe custody” of £103m of funds held, as such this is now being treated as suspected fraud. The funds in question were held by SLS Capital, a company contracted by Keydata to hold assets on its behalf in Luxembourg.

This is alarming and affects the following plans taken out in 2005:

Secure Income Bond – Issue 1 -- Growth

Secure Income Bond – Issue 1 -- Income

Secure Income Bond -- Issue 2 – Growth

Secure Income Bond -- Issue 2 – Income

Secure Income Bond -- Issue 2 – Quarterly Income (USD)

Secure Income Bond -- Issue 3 – Growth

Secure Income Bond -- Issue 3 – Income

Income payments due on these plans have stopped and invested capital is at risk.

It is understood that capital in other plans is secure and income payments are to recommence soon.


Compensation

PwC are working closely with the FSA and others including the Financial Services Compensation Scheme (www.fscs.org.uk). If compensation is due, investors will be entitled to recover up to a maximum of £48,000 – 100% on the first £30,000 and 90% on the next £20,000.


In addition, as a consequence of earlier problems concerning non-compliant ISAs, bondholders in all Keydata income issues will now receive income paid net of 20% income tax.


We very much regret the distress for all concerned and count friends and close family amongst the Keydata investor base.


Naturally we are paying close attention to events as they unfold. Dan Schwarzmann of PwC commented that this is an investigation that is occurring in “real time” signalling some patience is needed as they get to the bottom of this.


We will write again when events merit further comment. Meantime, updates can be found on PwC’s website: www.pwc.co.uk/KIS and the customer help line is 0118 925 5933. You should telephone this number If you require further information on how this inpacts upon you.

Piers Rouse
Managing Director