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Keydata Investment Services Ltd


In July 2009 the SFO began investigating Keydata Investment Services Ltd (Keydata) following a referral by the Financial Services Authority (FSA).

The FSA applied for Keydata to be put into administration because Keydata had been found to have sold products they claimed qualifed for ISA status when in fact they did not.  Keydata subsequently went into administration in June 2009.

Keydata investors had invested more than £100m in secure income bonds (SIB) 1, 2 and 3.  This money was invested in bonds issued by a Luxembourg company, SLS Capital SA (SLS).  Sums had also been invested in SLS bonds by investors who had not invested in Keydata.

After PricewaterhouseCoopers had been appointed as administrators of Keydata, it was discovered that SLS had not paid income and fees due to Keydata.  It was also discovered that assets of SLS had been misappropriated.  SLS itself was wound up and a liquidator appointed in Luxembourg.

The Financial Services Compensation Scheme arranged for SIB 1, 2 and 3 investors who invested in ISAs to be compensated.


Update as at 2 November 2012

Substantial efforts have been made to trace the assets of SLS Capital SA and David Elias in overseas jurisdictions since September 2010.  These efforts have not met with any success and it is considered unlikely that the situation will change.  Accordingly, the SFO is closing this case and will not be pursuing any further enquiries in relation to this matter.

Update as at 17 November 2011

We are continuing with our enquiries to trace the assets of SLS and when we have completed those enquiries we will provide a further update. 

Update as at 27 April 2011

We are sorry that we have not given an update on this case since April 2010.  This was due to an error in our internal communications processes.

Since April 2010 the Financial Services Compensation Scheme has paid out more than £300m in compensation to victims.  Most recently the Financial Services Authority fined the Norwich & Peterborough (N&P) Building Society £1.4m for giving unsuitable advice on Keydata products.  The N&P has also volunteered to make ex gratia payments to its Keydata investors.

In the last quarter of 2010 we reviewed all of the information and intelligence we had on our Keydata case and cases related to it.  After extensive consideration we concluded that we had insufficient evidence to secure a prosecution in this case.  As a result we decided to focus our efforts on tracing the assets of SLS Capital SA rather than attempting to prosecute.  We are continuing to do this.