Keydata income payments go astray as counterparty in administration

Many Keydata investors have not received their monthly income payments in November, with administrators unable to confirm when the money might resurface

The news comes as one of Keydata's major counterparties, Lifemark SA, is put into provisional administration by Luxembourg's regulator.

Investors began reporting they had not received income payments on their Secure Income Plans (SIP), Defined Income Plan (DIP) and Secure Income Bond 4 (SIB4) investments in late October.

Administrators PricewaterhouseCoopers (PwC) originally told investors an administrative issue was the cause of the missing payments, but could give no indication as to when income might be paid.

However on 20 November, Lifemark SA, a traded life policy manager which underpinned many of Keydata's products and was responsible for income payments on SIB4, SIPs and DIPs, was placed in provisional administration by Luxembourg's regulator, the Commission de Surveillance du Secteur Financier (CSSF).

Dan Schwarzmann, joint administrator of Keydata and partner at PwC, says: "Over the last few weeks Lifemark has not been making the income payments due to investors. We have been repeatedly assured by Lifemark that this is due to administrative issues and have advised investors accordingly.

"I now understand Lifemark is subject to a court driven process, which is not an insolvency procedure. I know that this news will cause concern to those Keydata investors who have Lifemark backed products and I am endeavouring to talk to Lifemark at the earliest opportunity so that I can provide investors with as much clarity as possible."

Colin Stratton, IFA at Page & Page Financial Services, says investors were given no warning the payments might be late.

"Without warning or prior notice Keydata have not paid income on the SIP and DIP plans this month," he says.

"On phoning we are told it is a system problem - no explanation of what the system problem is or when it will be resolved, how long it will last, if payments will be backdated, or if they will get paid next month."

Stratton was first alerted to the problem by clients on 7 November, though the Keydata Victims action group suggests payments were missed as early as 24 October.

PwC says it will keep Keydata customers informed of any developments relating to Lifemark. For more information go to: http://www.pwc.co.uk/KIS