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Lifemark SA in “Provisional” Administration

Posted by robin in Financial Articles Monday November 23, 2009 1:49 pm

Well, well…

A week after we thought there was closure on Keydata, events take another turn.

The Commission de Surveillance du Secteur Financier (CSSF) issued a press release last Thursday.

Lifemark S.A - until then the ‘good’ life settlement policy administrator - has been placed into “provisional adminstration” under the wing of KPMG.  Its task is “auditing, initiative and investigation”. 

Lifemark replaced SLS Capital as the fund provider to Keydata for its range of structured investment products backed by US life insurance policies.  Keydata investors sank a further £349m through Lifemark (£103m was invested with SLS) according to PwC’s audit in June and these assets were declared safe. 

This measure is explained as not depriving the board of its duties but subordinating its authority.   All future board decisions must get the nod from KPMG before being validated.

PwC must be irritated and embarrassed in equal measure.  Less than a week after releasing the good news that the UK financial services compensation scheme was going to shell out for the mess (up to a point), this happens.  

Its press release on Friday revealed income payments from Lifemark had dried up “over the last few weeks”.  Repeated assurances that this was due to administrative problems were accepted at face value until last Wednesday when the Luxembourg regulator announced its request to the district court. 

On Friday PwC seemed as in the dark as anyone as to what happens from here and are seeking ”to talk to Lifemark at the earliest possible opportunity”. 

Lifemark describes itself as Europe’s largest independent direct investor in American Senior Life Settlement policies with a portfolio of US$1.3bn.      

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