The FSA should immediately review its authorisation procedures following news IFAs will need to pick up the tab for Keydata compensation, according to AIFA.
It believes the FSA had wrongly authorised the structured product provider as part of the investment intermediation sub-class. Financial Services Compensation Scheme (FSCS) costs are expected to rise to around £50m following the fallout from Keydata, which was classed as an investment intermediation firm. AIFA says the FSA had failed in its role as regulator by allowing the firm to be authorised in this sub class. Chris Cummings, director general of AIFA, adds: "Keydata portrayed itself to be a product manufacturer yet the cost of its collapse is being picked up by the IFA professi...
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