Important FSCS and HMRC updates - 13/11/09

The Financial Services Compensation Scheme (FSCS) and HM Revenue and Customs (HMRC) have made important announcements today in relation to compensation for Keydata investors and also the position of investors who invested in Keydata ISAs but where the product did not in fact meet ISA eligibility requirements.

Details of these announcements can be found on the Financial Services Compensation Scheme and HMRC websites.

You can contact FSCS's Customer Services Team on 020 7892 7300 or 0800 678 1100 and HMRC has an ISA helpline - 0845 604 1701.

The Administrators have also made an announcement welcoming the news.

Broadly these announcements cover the following categories of investment:

Category 1: Secure Income Bond issues 1,2 and 3

As previously announced these bonds were issued by SLS Capital SA but the assets backing these bonds have been liquidated and misappropriated. The FSCS announcement applies to investors in these products and affected investors should refer to the FSCS website for further details. Investors who invested through an ISA wrapper should also refer to the HMRC announcement.

Category 2: All 5 year bonds issues by Lifemark S.A including Secure Income Bond 4, Secure Income Plan issues 1 to 12 and 14, Defined Income Plan issues 1 to 8 and the Income Plan issues 1 to 12 and 14

As previously announced these products do not meet ISA eligibility requirements. The HMRC and FSCS announcements contain important news for these investors.

Category 3: All 7 and 10 year bonds issues by Lifemark S.A including Secure Income Bond 4, Secure Income Plan issues 1 to 12 and 14, Defined Income Plan issues 1 to 8 and the Income Plan issues 1 to 12 and 14

Because these products are now listed and had 5 or more years to maturity from the date of listing, they meet ISA eligibility requirements from that date. The HMRC announcement provides further detail on the position for these investors.

Category 4: Income Property Bond issues 1 to 6

The Bonds were issues by Hometrak S.A. We have made an announcement in relation to these bonds on 27 August. These bonds were promoted as ISA eligible but do not meet ISA qualifying requirements. The HMRC announcement deals with the ISA position for these investors.

Please note only investments covered by the definitions of categories 1-4 above are affected by the HMRC and FSCS announcements. For details of those products that are not affected please click here.