Hopes that Keydata Investment Services Limited (Keydata) could be sold following its administration almost a month ago have been shattered after PricewaterhouseCoopers (PwC) uncovered irregularities around income payments and early redemptions of several products.
PwC, which is acting as the administrator after the FSA placed the structured product provider into administration on 8 June, will now only sell the part of the business ‘that provides services in relation to third party products’.
PwC’s forensic examination of Keydata’s accounts also revealed that some assets may have been liquidated and misappropriated. Concern was raised over Luxembourg-domiciled vehicle, SLS Capital which has not paid an income on its bonds since October 2008.
A statement released by the directors of Keydata in reponse to PwC's findings highlighted the point that Keydata was only a distributor of the SLS bonds and is not connected with SLS or the various other counterparties involved in the SLS bond issue, saying: ‘As such, it would now appear that, along with the other distributors, Keydata has been an innocent victim of a fraud perpetrated by SLS and those connected with it.’
