Keydata Investment Services Limited (in administration) ("KIS")

THIS DOCUMENT WAS PRODUCED ON 12 JUNE. IT IS STILL VALID EXCEPT WHERE QUALIFIED BY CAPITALISED SCRIPT. FURTHER QUESTIONS AND ANSWERS NOW SUPPLEMENT THIS DOCUMENT.

This is an update produced on 12 June and supplements (or, as appropriate, supersedes) the questions and answers document dated 9 June.

Questions and answers - 12/06/09

Which KIS products may be impacted by the ISA non-compliance issues?
Based on our understanding at the current time we understand that the following products may be impacted:

  • SIB (Secure Income Bond) products issues 1-4;
  • SIP (Secure Income Plan) products issues 1-14 (no issue 13); and
  • DIP (Defined Income Plan) products issues 1-8.

Can you confirm that the credit risk on invested products is with the counterparty as outlined in product literature and not KIS?
The administrators have not had opportunity to review all of the relevant contractual documentation but this is their understanding based on what they have seen so far.

Given the announcement regarding recommencing processing can you provide an update on the status of particular KIS products?
These will be dealt with on a case by case basis.  For plans which are due to close or are approaching the "strike date" for investment, further information will be provided in due course on the website.  Cheques for open plans will be banked in segregated client accounts in the meantime.  Information will also be provided on the website for any imminent plan maturities.

Will redemption requests be processed in the normal course?
The administrators do not intend to stand in the way of any investor who wishes to redeem his or her investment where the plan terms permit that.  However, such investors should take independent advice on the appropriateness of this step given the potential penalties which may result and the fact that KIS is beginning to resume some processing in the administration and should be sold in the very near future.

What is the position with Defined Income Plan ("DIP") issue 9 (which has closed and is scheduled to 'strike' on 19 June) - especially given concerns regarding DIPs issues 1-8 and the fact that KIS is no longer marketing DIP issue 10?
The administrators continue to review the position and no decision has yet been taken.  Monies will not be invested until the administrators are satisfied with the ISA status of this Plan.  If the decision is taken not to proceed with this Plan we will make appropriate arrangements with regard to refunding monies held on behalf of investors.  Investors can exercise their right to cancel should they wish in accordance with the terms of the Plan. SUPERSEDED.

What will happen to IFA commissions which fall due after 8 June?
If products are invested after 8 June and the administrators receive commissions on these products then IFAs will be paid their agreed proportion of the commission.

Dan Schwarzmann and Mark Batten were appointed as joint administrators of Keydata Investment Services Limited on 8 June 2009 to manage its affairs, business and property as agents without personal liability. Dan Schwarzmann and Mark Batten are licensed to act as insolvency practitioners by the Institute of Chartered Accountants in England and Wales.