SFO drops inquiry into Keydata failure

The Serious Fraud Office (SFO) has dropped an investigation into Keydata Investment Services, in which thousands of UK pensioners sank hundreds of millions of pounds, because it could not find enough evidence to prosecute.

The SFO, which launched an inquiry after administrators discovered over £100m was missing when the company was pushed into administration in 2009, said it would now focus efforts on tracing lost assets.

All eyes are now on two inquiries by the Financial Services Authority: one into Keydata's practices, and one into its founder Stewart Ford.