MP's Questions

Barry Sheerman: To ask the Chancellor of the Exchequer what estimate he has made of the number of UK residents affected by the entry into administration of Key Data Investment Services (KIS); and what assessment he has made of the financial consequences of the Financial Services Authority's decision to require KIS to enter administration.

Sarah McCarthy-Fry (Parliamentary Secretary, HM Treasury): On 8 June 2009, as a result of the application by the FSA on the grounds that Keydata was insolvent, the Court placed Keydata into administration. PricewaterhouseCoopers ('PwC') were appointed as administrators for KIS and the administration process is still ongoing. A dedicated website and telephone number have been made available for investors and other interested parties.

The FSA is now working closely with PwC and the Financial Services Compensation Scheme as well as with other interested parties, including the Serious Fraud Office and overseas regulatory authorities. In addition HMRC is working with the administrators to establish what the tax implications of this are to ISA investors in light of all the relevant information. HMRC will soon be advising individuals as to the tax implications of their non-qualifying Keydata investments. PwC and the FSA will keep the public updated.