FCA complains it was misled as it fines Keydata trio £80m

The regulator also claims Mr Owen ‘recklessly’ relied on assurances from Mr Ford that he would resolve the problems with the portfolio’s performance and agreed to Keydata funding the income payments to investors from the firm’s own resources.

Mr Ford, Mr Johnson and Mr Owen previously applied unsuccessfully to the tribunal for an order preventing the FCA from publishing their decision notices.

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As FTAdviser previously reported, the FSA had rated products sold by Keydata as ‘inherently high-risk’ and noted a “significant probability of… high potential relative loss” two years before the distributor collapsed at an estimated cost of £260m for clients.

According to documents obtained via a freedom of information request by a regulatory lawyer working with IFAs and Keydata victims, the regulator placed traded life policy investments - of which it cited Keydata products by name - on its Product Risk Framework in 2007.