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FCA Fines Compliance Officer £200,000 in ‘Death Bonds’ Case

Aarti Maharaj | May 27, 2015

Stewart Ford, founder and chief executive of Keydata Investment Services, has been slapped a record fine of £75 million by the FCA, while Mark Owen, the company’s former sales director, racked up £4 million in penalties, and Peter Johnson, former compliance officer, will have to pay up  £200,000 for their roles in selling “death bonds,” which cost investors millions amid the collapse of the firm.

Death bonds are high-risk trade investments and are created from an underlying pool of assets, where the individual risks associated with one policy are evenly dispersed, making it a stable investment. These bonds are dependent on the death of an insurance holder.  

According to the British regulator, Keydata designed and sold investment products to retail investors through independent financial advisers. The products were “underpinned by Keydata’s investment in bonds issued by Luxembourg special purpose vehicles called SLS Capital S.A. (SLS) and Lifemark S.A.,” the FCA said...

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