Keydata Investment Services Limited (in administration) - SLS Capital section

FSA update dated 2 June 2011

The FSA posted an update to their website on 26 May 2011. You can access this update by using the link on the "External information sources", "FSA - Frequently Asked Questions" section of the website.

Liquidators of SLS dated 1 June 2011

The liquidators of SLS, Baden and Baden, posted an update to their website on 2 March 2011. You can access this update by using the link on the "External information sources", "Liquidator of SLS" section of the website.

Maturity of certain SLS investments (updated as of 13 January 2011)

The Administrators are aware that the maturity of certain SLS Capital S.A. (“SLS”) investments has occurred or is due to occur in January 2011.  All SLS investors should have received a copy of our six monthly reports to creditors which details that the underlying assets of these investments have been misappropriated. 

Investors should also be aware that Keydata is unable to make any payments to investors until it has received the corresponding funds from SLS.  Due to the misappropriation of these underlying assets, it is not possible for SLS to remit any funds to Keydata and accordingly, Keydata is not able to process any maturity payments to investors.

In November 2009, the Financial Services Compensation Scheme (“FSCS”) confirmed that Keydata was in “default” and wrote to all investors in Secure Income Bonds 1, 2 and 3 inviting them to submit claims for compensation.  The Administrators encourage those investors who are yet to submit a claim to the FSCS to do so as soon as possible so that their claims can be assessed.

Background

The underlying assets in relation to these plans were liquidated and misappropriated. This means that investors will not receive any income payments or return of their capital, unless recovery actions are successful. SLS Capital is now in liquidation.

Baden & Baden, based in Luxembourg, has been appointed as the liquidator of SLS Capital. Investors should review their website for up to date information.

If investors have not received any compensation from the FSCS (see below), Baden & Baden have asked that they file their interest in the liquidation by completing and returning a form, available through the link or directly from the liquidator’s website. Details on where to send the form are also available on the website. Baden & Baden have confirmed there is currently no deadline for returning these forms, and investors should note they do not also need to complete a creditor’s form, referred to at the bottom of the liquidator’s website page.

If investors have received compensation for all or part of their investment from the FSCS, then they cannot make a claim in relation to their investment with Baden & Baden as they will have assigned their rights to the FSCS. See the FSCS website Q&A, question 10 for further information in this regard.

The Financial Services Compensation Scheme (FSCS) are processing claims from investors in Category 1 products. All investors affected should have received an application form from the FSCS in November 2009. If you have not received an application form, please go to the FSCS website and contact them directly.  

For further information about the liquidation and the possible reinvestment of funds in SLS products through an ISA, please see below.
 

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