You are here: Home -

FCA seeks to fine three men £80m over sales of ‘death bonds’

0
Written by: Your Money
26/05/2015
The city watchdog is seeking to fine three individuals nearly £80m for misleading investors into buying “death bonds” linked to life insurance policies.

The Financial Conduct Authority (FCA) said that the products, which were sold by a company called Keydata, were “unclear, incorrect and misleading.”

Keydata chief executive Stewart Ford is set to receive a £75m fine. The other two men, Mark Owen, former sales director, and Peter Johnson, former compliance officer, will face fines of £4m and £200,000 respectively. All three are set to appeal the ruling.

The FCA said the three individuals permitted Keydata to continue to sell the products even though they were unsuitable for individual investors.

Around 37,000 people bought the bonds between 2005 and 2009. They were incorrectly told the products were eligible for ISAs.

In total, investors lost at least £330m and are currently being refunded by the Financial Services Compensation Scheme (FSCS).

Keydata designed and sold the investment products to retail investors via IFAs. The products were underpinned by Keydata’s investment in bonds issued by Luxembourg special purpose vehicles called SLS Capital and Lifemark. In turn SLS and Lifemark invested in portfolios of life settlement policies – second-hand life insurance policies, which pay out when the original owner died.

Tagged:

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week