Frequently Asked Questions

F.A.Q.

Table of Contents

  1. What is KSLIT?
  2. Can I join?
  3. What will KSLIT do?
  4. What will KSLIT not do?
  5. Will membership of KSLIT affect my claim with the Financial Services Compensation Scheme in any way?
  6. Why is KSLIT not representing investors with losses in other Keydata products?
  7. Does KSLIT have legal representation?
  8. Will I have to contribute to KSLIT funding?
  9. Can KSLIT guarantee recovery of my losses?
  10. How long will any legal action take?
  11. Can I leave KSLIT?
  12. Investor Updates

1. What is KSLIT?

KSLIT is an action group for those with capital losses resulting from direct or indirect investment in:
  • bonds issued by SLS Capital SA (including the Keydata Secure Income Bond Issues 1, 2 and 3)
  • bonds issued by Life Settlements Capital SA
For the avoidance of doubt, KSLIT is unable to represent those who invested in any other Keydata product.

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2. Can I join?

You can join if:
  • you invested directly into bonds issued by either SLS Capital SA, or Life Settlements Capital SA ; or
  • you invested, via an intermediary based outside the UK, into bonds issued or ultimately backed by bonds issued by either SLS Capital SA, or Life Settlements Capital SA; or
  • you invested in the Keydata Secure Income Bond issues 1, 2, or 3, and have been refused compensation by the Financial Services Compensation Scheme; or
  • you invested more than £50,000 into the Keydata Secure Income Bond issues 1,2 or 3, and have accepted compensation from the Financial Services Compensation Scheme. Although you will have assigned all rights to pursue third party action over to the FSCS by accepting the compensation, the FSCS may still be prepared to re-assign some of those rights to you.
You cannot join if:
  • you invested less than £50,000 into the Keydata Secure Income Bond issues 1, 2 or 3, and have already accepted compensation from the Financial Services Compensation Scheme. This is because you will have assigned all of your rights to pursue action against third parties over to the scheme, which is unwilling to re-assign those rights back to you.
What if I have not yet sent my claim to the FSCS, or am waiting for their decision?
  • If you invested less than £50,000, then you should either submit the FSCS claim documentation you have already received and /or await their decision. If you are offered compensation and accept it, then you will be unable to join. If your claim is rejected then you can join. If you reject any compensation offered then you can join - please note that you should think very carefully before rejecting any compensation offered.
  • If you invested more than £50,000 then you may be able to join. You will need to discuss and agree with the FSCS a revised form of assignment applicable to KSLIT members. We can help you with this if necessary.
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3. What will KSLIT do?

KSLIT /is thoroughly investigating the roles and responsibilities of the highly reputable institutional counterparties involved in the structure of the affected investments, particularly those charged with their security, in order to assess the merits of legal action for the full recovery of investor losses against those counterparties where deemed appropriate.

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4. What will KSLIT not do?

KSLIT will not:
  • attempt to trace or recover the misappropriated assets themselves
  • bring any action against IFA's/brokers
  • bring any action against the Financial Services Authority.
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5. Will membership of KSLIT affect my claim with the Financial Services Compensation Scheme in any way?

No

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6. Why is KSLIT not representing investors with losses in other Keydata products?

KSLIT wishes to focus its resources on institutional counterparties that we believe have allowed assets under their guardianship to be misappropriated. Whilst investors in other Keydata products may have suffered losses, these do not appear to be as a result of misappropriation.

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7. Does KSLIT have legal representation?

KSLIT is represented by Enyo Law LLP, a leading London law firm with extensive experience of similar actions.

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8. Will I have to contribute to KSLIT funding?

Full investigation into the roles and responsibilities of counterparties, and any subsequent action, is likely to take time and require signifi-cant funding. KSLIT believes that there are a number of potential ways of attracting funding, but also accepts that some contribution from its membership is necessary. The contribution to join KSLIT will be 2% of the cash you initially invested.

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9. Can KSLIT guarantee recovery of my losses?

We firmly believe it is well worthwhile to pursue this action. However we cannot provide a guarantee of success.

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10. How long will any legal action take?

This cannot be determined exactly at this stage, but certainly exceeding two years and probably three.

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11. Can I leave KSLIT?

You can leave KSLIT at any time. Please note, however, that we will not return any contribution you may have already made to the group.

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