Keydata lands building society on the block

ONCE a sleepy building society with branches scattered around the historic towns of East Anglia, Norwich & Peterborough has slumped since the collapse of Keydata.

The sale of the Keydata’s life settlement bonds to more than 3,000 of its customers could ultimately bring it to its knees – and spark interest amongst buyers.

Last week’s ruling by the Financial Ombudsman could be the first of a wave of angry investors seeking money.

More than 60 ongoing complaints against N&P are with the Ombudsman.

Reports suggest Norwich & Peterborough could have paid a smaller sum into the Financial Services Compensation Scheme (FSCS) levy – the vehicle used to return money to investors that all firms in the sector pay in to – than others.

The building society is said to have paid into the fund in relation to income derived from its independent financial advisory arm, with the full figure to be revealed later this month when it reports its annual results.

Other financial firms have since been forced to pay millions of pounds in compensation to the levy on ‘eligible income’ across their entire business.