NDFA withdraws Keydata bid

Despite being one of the favourites to acquire the troubled firm, NDFA said it would remove its offer and instead use the funds to reinvest into the company and further develop its own products.

Keydata, which incurred an unpaid tax liability to HM Revenue & Customs of approximately £5m as a result of selling non-compliant tax-efficient savings products, was declared insolvent by the FSA last Monday.

By midweek, administrators PricewaterhouseCoopers said it had already received more than 30 offers of interest for the firm.

NDFA said it had approached PricewaterhouseCoopers about acquiring Keydata, but had decided against a move for the troubled firm after researching documents and background information on the company.

In a statement, NDFA said: "We have given this opportunity careful consideration, but having reviewed the opportunity, we are happy to withdraw our interest.

"We have built a sound business by offering innovative products appropriate for the ever-changing requirements of everyday investors, with an emphasis on exceptional customer service, trust and transparency.

"We will remain interested in all opportunities of this nature that present themselves in our drive to grow assets and to build the business, but, for now, our focus will remain our organic growth."

NDFA said it was seeing substantial growth in new business, with profits expected to exceed £2m during the current financial year.

The company has launched more than 170 plans over the past 10 years, with sales in excess of £1.7bn.

Jubilee Financial Products, a specialist investment boutique, and structured product providers Opal and Meteor Asset Management are thought to be some of the companies to have approached PricewaterhouseCoopers over the potential acquisition of Keydata.