Keydata placed into administrationStructured product provider is declared insolvent

09 June 2009

Investors with Keydata structured products told they can't access their money

Yesterday the Financial Services Authority (FSA) announced that the Keydata has been placed into administration due to insolvency. The administrators are PricewaterhouseCoopers

Structured product specialist

The company specialises in the design and distribution of structured products, a type of fixed-term investment product. Structured products hit the news last year after thousands of investors lost money when Lehman Brothers, which underwrote the products, collapsed. 

'At the moment, the message for investors is to do nothing,' a spokesperson for PricewaterhouseCoopers told us.  'Everything has been frozen, this is to ensure everyone is treated the same. Investors cannot pay in or take out money from their investment. We want to be clear and open with investors and will be updating our website when we have more information.' 

Situation to be assessed

Although no one can confirm whether investors will lose any money it is thought that this is unlikely. A source close to Keydata told us: 'Keydata thinks everything will be fine for investors. All the money is completely separate from Keydata'.

The FSA confirmed that income and maturity payments won't be made to investors because the business has been suspended. But it added that this is temporary while PWC assesses the situation.

For updates go to PWC's website or call it's helpline on 020 7804 4424. For more on structured products, look in July's Which? Money magazine. 

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