FCA bans former Keydata compliance officer

The FCA found that Mr Johnson failed to act with integrity in his role as Keydata’s compliance officer and misled the then FSA on a number of occasions.

In May 2015, the FCA announced plans to fine three former members of Keydata’s senior management - Stewart Ford, Mark Owen and Peter Johnson - almost £80m collectively.

In the FCA’s view, Keydata sold investment products to retail investors via IFAs that were underpinned by Keydata’s investment in bonds issued by Luxembourg special purpose vehicles SLS and Lifemark. In turn SLS and Lifemark invested in portfolios of life settlement policies. The products were sold as eligible for ISA status, but they were not, in fact, eligible.

Additionally, the FCA believes that the three individuals permitted Keydata to continue to sell the Lifemark-backed products to retail investors when the individuals were aware that it was highly likely the products did not comply with the ISA regulations, that the financial promotions were unclear, incorrect and misleading, that the due diligence on the products was inadequate and that there were problems with the performance of the portfolio ultimately underlying the products.

All three referred their Decision Notices to the Upper Tribunal, but Johnson later withdrew his reference. Proceedings continue in the Upper Tribunal with respect to the references made by Ford, Keydata’s former CEO, and Owen, Keydata’s former Sales Director.