FSCS outlines payout schedule for Keydata

The FSCS has revealed a payout timetable for investors, advisers and fund managers affected by the collapse of the Lifemark SA Keydata scheme.

FSCS outlines payout schedule for Keydata
1 minute

Initial distributions of 7.5p per pound are expected to be made by the end of June following undisclosed recoveries from Lifemark plans. 

Further distributions will be made next year, which should bring total returns to between 12% and 15%.

Total Keydata recoveries are expected to hit £75m over the next two or three years, according to the FSCS February budget. To date it has accepted around 16,000 claims from investors in the Lifemark plans and has awarded a total £228m in compensation.

Recovery allocations

Advisers will receive a refund of some of their FSCS levies, as they were allocated the charges of pursuing recoveries.

Keydata investors whose claims were capped at £48,000 will also receive a share of the recoveries, as those accepting compensation earlier may otherwise be left worse off than if they had waited for future recoveries.

Fund managers that contributed to a 2011 interim levy will receive payments ahead of advisers as they were subject to a higher charge due to cross-subsidising the advisers’ levies.

Advisers and fund managers are expected to receive their distributions by the end of October.

Keydata was put into administration in in June 2009, and Lifemark was placed into provisional administration in November 2009.

Lifemark SA securities were suspended by the Luxembourg regulator in February for failure to pay income.

 

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