N&P loans to help wor­ried in­vestors

The Peterborough Evening Telegraph - - News - By NICK REINIS

IN­VESTORS have been handed a life­line by a city build­ing so­ci­ety as they con­tinue to wait to find out if their in­vest­ments are safe.

Nor­wich & Peter­bor­ough Build­ing So­ci­ety (N&P) is of­fer­ing an in­ter­est-free loan to its 1,600 cus­tomers who bought in­come-gen­er­ated prod­ucts from Key­data In­vest­ment Ser­vices, which has since fallen into ad­min­is­tra­tion.

The loan is avail­able as a lump sum to help cover in­come pay­ments which have not been made to cus­tomers by Key­data since Jan­uary.

If taken up, the loan would not need to be re­paid if the cus­tomers do not re­ceive a re­turn on their in­vest­ment be­fore the end of the loan term on De­cem­ber 31.

The move comes af­ter N&P’s in­de­pen­dent fi­nan­cial ad­vice arm sold a range of prod­ucts from Key­data In­vest­ment Ser­vices to around 3,500 peo­ple.

In June 2009 Key­data was placed into ad­min­is­tra­tion and an in­ves­ti­ga­tion was launched a month later by the Se­ri­ous Fraud Of­fice (SFO).

De­spite Key­data’s prob­lems, in­vestors were still re­ceiv­ing in comegen­er­ated pay­ments un­til they dried up in Jan­uary 2010.

Since then N&P, based at Peter- bor­ough Busi­ness Park, in Lynch Wood, has come un­der crit­i­cism from its cus­tomers, who feel they are in the dark over the fu­ture of their in­vest­ments.

N&P’s chief ex­ec­u­tive Matthew Bul­lock said: “It’s dis­ap­point­ing there has not been more sig­nif­i­cant progress.

“In the mean­time, we are well aware some of our cus­tomers who chose to in­vest in Key­data prod­ucts for in­come are fac­ing in­come dif­fi­cul­ties fol­low­ing the sus­pen­sion of their in­come pay­ments.

“I shall be writ­ing to our Key­data cus­tomers this week whose in­come has ceased, invit­ing ap­pli­ca­tions for an in­ter­est-free loan to help cover the in­come pay­ments they should have re­ceived this year.”

But the 1,900 peo­ple who bought cap­i­tal in­vest­ments in Key­data through N&P can­not ap­ply for the loan and they still face an anx­ious wait to find out if they will re­ceive a re­turn on their in­vest­ment.

And Mr Bul­lock stressed that the loan of­fer does not mean that N&P are tak­ing le­gal li­a­bil­ity for the dif­fi­cul­ties suf­fered by Key­data in­vest- ments.

He said: “If the rel­e­vant Key­data in­vestors de­cide to ap­ply for the loan, it will not af­fect their rights to pur­sue any com­plaint they may have in re­la­tion to their Key­data in­vest­ment.

“If they wish to com­plain about N&P’s ac­tions then they should let us have de­tails so that we can en­sure their com­plaint is prop­erly in­ves­ti­gated.

“We con­tinue to work with the Fi­nan­cial Ser­vices Author­ity and the ad­min­is­tra­tors of Key­data to seek an early res­o­lu­tion to this is­sue and we have in­formed them of this ini­tia­tive.”

N&P has also is­sued a call re­as­sur­ing its other 500,000 cus­tomers, who re­main un­af­fected by the is­sue, that their money is safe.

A spokesper­son for N&P added: “The so­ci­ety is still strong and safe and what­ever the out­come, we are con­fi­dent we can cover it.”

In­vestor Tony Hunt, from Down­ham Mar­ket, who has set up the pres­sure group Nor­wich & Peter­bor­ough Vic­tims, has wel­comed the build­ing so­ci­ety’s move.

He said: “It is good news for peo­ple who are in a des­per­ate sit­u­a­tion.

“Peo­ple had felt alone and con­fused, but this is a help.”

LIFE­LINE: N&P chief ex­ec­u­tive Matthew Bul­lock.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.