Keydata investors 'denied refund'
Some people who directly invested in Keydata bonds and lost money when the company went into administration have been denied access to a refund by the Financial Services Compensation Scheme, according to reports.
Savers who invested money in Keydata's Secure Income bonds issue one, two and three, through an Isa were told last year that they would be compensated. However, non-Isa customers were told they must apply individually for compensation and the FSCS is now rejecting some claims, according to the Mail on Sunday.
Keydata went into administration in June 2009. It had entrusted savers' money to SLS Capital, and Keydata administrators PricewaterhouseCooper believes £103 million held in the products later went missing from SLS.
According to the FSCS, the reason for the rejection of claims is based on a technicality. James Derbyshire, FSCS' legal counsel, told the paper: "We have to assess claims against failed firms on a legal liability basis."
He added that it means the FSCS cannot with enough certainty pin the liability for the losses incurred by non-Isa investors on Keydata.
There are thought to be 1,900 investors with non-Isa plans, worth £50 million.