With all the regulation in the world it looks bad for Keydata investors!!

On the front page of the Money Marketing edition for August 20th, one story highlights the plight of Keydata investors. I thought these kinds of disasters would not happen considering how much money the British quango (is it a quango?) the Financial Services Authority (FSA) absorbs every
year.
Dan Schwarzmann, a partner of PricewaterhouseCoopers (PWC) and joint administrator of Keydata, predicts that it is unlikely that creditors will receive much money back.
PWC has not yet found missing SLS Capital policies, where about 5,500 investors have investments.
Keydata was a structured investment provider put into administration by the FSA initially for the non-compliance of ISA retail investment plans.
This case is additional to the Lehman Brothers mess and at least the FSA cannot expect ordinary UK retail investors to evaluate counter-party
risk.
The following week's edition of Money Marketing has Paul Farrow quoting one angered Keydata investor, who said "The question of how £103m of investors' money could disappear from an FSA-regulated company is an utter scandal as is how non-compliant ISAs could be marketed for five years.
Paul Farrow wonders what was the role of HMRC in the checking of the ISAs?