KEY Benefits Limited (03215103): administration
- Status
- Administration ended
- Administration began
- 2014-05-21
- Administrators' firm
- Grant Thornton
- Formerly
- Winterbourn Limited
- Incorporated
- 1996-06-21
- Location
- Sutton
- Industry
- 65120 Non-life insurance
Why it went into administration
- Regulatory change or action
- Creditor pressure / legal action
- Cash flow / liquidity pressure
From the administrators' statement
The Company traded as an independent financial adviser It was authorised and regulated by the Financial Conduct Authority (“FCA”) The Company commenced trading in 1996 In 2008, the Company changed its business model in readiness for the terms of the Retail Distribution Review (“RDR’), which was implemented with effect from 1 January 2013 This essentially prohibited the receipt of commission on retail investment products In readiness for this, the Company had converted to a 100% fees-only model by 2010
In January 2008, the Company adopted the use of “Wrap Platforms” as an integral part of ther RDR-ready business model, and began to focus solely on individual investment advice “Wrap Platforms” are a means of consolidating and managing an investor’s investment portfolio and financial plans The benefit to clients of “Wrap Platform” services are that clents only have one party to deal with saving time and money dealing with diverse range of fund managers, financial institutions and product providers In addition, clients can see their entire portfolio in one place enabling them to track their investments on a daily basis In consideration for this service, the Company generated recurring fees from clients The Company's last two years accounts demonstrate that the Company has traded profitably, generating a reasonable level of recurring income
The Company also provided advice on Unregulated Collective Investment Schemes ("UCIS”) UCIS are schemes that were not authorised by the then regulator, Financial Services Authority (“FSA”), through which a number of investors pool their funds in to one or more assets (non-mainstream pooled investments) with a view to deriving a profit UCIS Schemes differ from Collective Investment Schemes (“CIS”) in that UCIS schemes are investment vehicles set up for investment classes that are unable to follow the FSA's rules on matters such as spread of assets, liquidity, dealing frequency, cash reserves and limitations on borrowings Although UCIS schemes were not authorised by the FSA, persons carrying on the activity of advising investors (such as the Company) were subject to FSA regulation The investors take no responsibility for running the scheme and the schemes are often structured as General Partnerships, Limited Liability Partnerships and/or Limited Partnerships with the day to day management being undertaken by a Designated Member or General Partner From 1 January 2014, the FCA implemented new rules on firms advising on “non-mainstream pooled investments” such as UCIS schemes These can …
Administrators' statement of proposals (2014-06-06) · Companies House register