Advisers furious at having to pay for B&B mistakes

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Advisers have expressed their anger at potentially having to foot the bill for the fallout from the near collapse of Bradford & Bingley.

According to the Financial Services Compensation Scheme (FSCS), advisory firms could have their levies increased to pay for the the costs of nationalising the bank. The FSCS was forced to borrow £14bn from the Bank of England in order to transfer B&B’s retail deposits to Abbey in the wake of the bank’s nationalisation. It says deposit-taking firms will have to stump up £450m in 2009 to pay for the rescue deal, compared with just £5m this year. However, the FSCS said it may be forced to dip into the general pool at some point, which may affect the fees advisers and other firms pay. T...

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