Stockbroker and investment managemer Charles Stanley has hit out at the Financial Services Compensation Scheme (FSCS) and called for a different levying system after being hit with a £2.6m bill to compensate Keydata customers.
The outburst came as the firm announced a 2010/11 pre-tax profit of £17.7m, up 29.2% from 2009/10.
"The FSCS... imposes levies on companies like ours to compensate victims of loss caused by the collapse or misbehaviour of other, completely unrelated firms," said Sir David Howard, chairman of Charles Stanley said.
"More often than not these appear to be rogue businesses, operating in areas of the industry unrelated to us, marketing products or services that should have been stopped at inception."
Last year, Charles Stanley was ordered to pay a levy of £683,000, but after the collapse of Keydata, levies have rocketed to a total of over £300m, and the firm was hit with a bill for £2.6m.
"We join with the many companies, professional bodies and trade associations that are calling for a high-level enquiry into how such a thing, on such a scale, could possibly have been allowed to happen," Howard said.
Despite the levies, this year Charles Stanley's revenue hit £125.6m, up 9.2% from 2010's £115m.
Funds under the management and administration of the firm increased by 13.3% from £12.8bn to £14.5bn.
In May this year, the firm acquired Jobson James Financial Services in a £2m takeover deal.
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