Regulators have proposed levying the industry £74.4m to pay for the day-to-day running of the Financial Services Compensation Scheme (FSCS) up until next March, a 6% fall on last year's levy.
The planned "management expenses levy" is £69.1m, the minimum amount that will be levied for the period to pay for non-compensation costs the FSCS incurs in its work, such as paying for staff, IT, and legal costs associated with trying to recover from firms monies paid out in compensation to their clients. Firms that sold Keydata investment products are the target of a current legal battle brought by the FSCS. Compensation related to the failure of Keydata has so far cost the industry around £400m in compensation levies. The management expenses levy also includes the cost of outsourci...
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