Dan Schwarzmann, a partner at PricewaterhouseCoopers, the administrators to Keydata, said that he had established that investors’ capital was safe. However, they may still be hit by an unpaid tax liability on their investments of at least £5 million.
It is understood Keydata was in talks with HMRC on how to pay the bill when the FSA stepped in and applied to the Royal Courts of Justice for the firm to be put into administration on the grounds of insolvency.
Keydata is understood to have offered an alternative plan to the FSA which was rejected. A source close to the firm says: "Had it not been for the FSA's actions, there would not have been this present uncertainty to consumers."
It has also emerged that the three directors of Keydata have paid themselves a total of £7.9m over the last two accounting years.
The FSA alludes to other factors behind its administration move. There is speculation that these may be related to the directors’ pay, or to quoting unsustainable yields in promotional literature.