Posted: 18 November 2009
Issue: Vol 164, Issue 4233
Categories: Update, News, ISAs, Investments

Most individuals protected following FSCS decision

Keydata Investment Services Ltd was placed into administration on 8 June 2009.

HMRC have since been working closely with the Financial Services Authority (FSA), the Financial Services Compensation Scheme (FSCS) and administrators to reach a solution for investors.

As a result, the FSCS has confirmed that Keydata is in default, and it will invite claims for compensation.

HMRC will pursue the company for tax due prior to administration, and the FSCS will pay the tax on behalf of investors for the period since the administration.

This means that most individuals will not pay tax on their investments in Keydata individual savings accounts (ISAs).

Furthermore, investors will be able to reinvest their money in a new ISA without losing their tax-free allowance, once their investment is redeemed or matures, or they receive compensation.

People who have invested in these ISAs do not need to take any action yet. The FSCS will write to all affected individuals to explain what they need to do next.

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