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Zac Goldsmith MP joins Keydata fight
20 September 2010
Tory MP Zac Goldsmith has pledged to take up the fight for Keydata investors after being contacted by an IFA with clients’ money in the failed investment company. He has promised to bring the issue to the attention of Financial Secretary to the Treasury Mark Hoban. Vintage Financial director Geoff Hartnell met with the Member of Parliament for Richmond Park on Friday. He said Goldsmith had been "unaware" investors face losing their savings, and IFAs risk going bankrupt, over failed investment firm Keydata and the Lifemark-backed bonds it sold. More than £100m was invested by Keydata investors in Secure Income Bonds (SIBs) 1, 2 and 3, before the FSA placed the firm in administration in June 2009 on grounds of insolvency. Luxembourg-based Lifemark ran bonds backing Keydata plans owned by 23,000 customers who invested £350m. Goldsmith joins the growing list of MPs who have pledged to push the Keydata issue up the political agenda. Four MPs from Norfolk have pledged to get justice for investors. Norman Lamb, Chloe Smith, Elizabeth Truss and George Freeman this month met with representatives of the FSA to quiz the regulator on its role in the Keydata collapse. The group of MPs grilled Hector Sants about what officials at the FSA knew and if the regulator did all within its powers to protect investors. About 3,100 people put money in Lifemark-backed Keydata products on the advice of Norwich and Peterborough Building Society (N&P) IFAs, and they fear their savings are lost after Keydata went into administration last year. In April, the Serious Fraud Office (SFO) began investigating the activities, control and ownership of Lifemark, in addition to its probe into the activities of Keydata in marketing and selling products underpinned by bonds issued by Lifemark. The FSCS is due to give its decision this week on the level of compensation due to investors in Lifemark-backed Keydata plans. Published by IFAOnline
