Following the announcement that Keydata Investment Services Limited is officially in default, the Financial Services Compensation Scheme (FSCS) has announced that it can now start considering claims against the firm.
Keydata designed, distributed and administered structured investment products until being placed into administration on 8 June this year. Since then the FSCS has been working closely with the firms' administrators, PriceWaterhouseCoopers, the Financial Services Authority (FSA) and HM Revenue and Customs (HMRC) to understand the implications of the failure of the firm for its customers.
A number of complicated legal issues surrounding Keydata have prolonged the process, but the FSCS has confirmed it is now in a position to start sending application forms to customers of Keydata who have suffered immediate financial loss.
HMRC has also confirmed that Keydata's products did not meet the individual savings account (Isa) eligibility rules. But, for the period before Keydata went into administration, investors will not have to pay any tax as HMRC will pursue recovery of the tax from Keydata itself.
