UK's Financial Services Authority: Further Update On Keydata Investment Services Limited

On 1 February 2010 the Luxembourg financial services regulator, the Commission de Surveillance du Secteur Financier (the CSSF) suspended the securities issued by Lifemark S.A. (Lifemark) from trading on the Luxembourg Stock Exchange.

The CSSF is considering a proposal from Lifemark, submitted on 31 January 2010, to restructure its debt and change the terms and conditions of the existing Lifemark bonds to zero coupon bonds, so they would no longer carry an entitlement to receive interest.

Lifemark's bonds underpin a number of retail investment products provided and administered by the UK company, Keydata Investment Services Limited (Keydata), to UK consumers.

This proposal is subject to the approval of the CSSF which will consider whether the proposal will ensure that investors' monies are recovered or whether it would be in their best interests to pursue liquidation under Luxembourg securitsation law.

Keydata was placed into administration by the Financial Services Authority (FSA) on 8 June 2009 due to substantial tax liabilities arising from irregularities with its products. The investors in these Keydata products are the ultimate beneficial owners of the majority of the bonds issued by Lifemark.

The CSSF and the FSA are working together in close cooperation in this matter. Further updates will be published on the FSA website.

For more information see the CSSF announcement.