Review into £70m Keydata levy could cause "havoc"

clock

A law firm challenging the FSCS's additional levy for the failures of Keydata and two stockbrokers says the body made a "schoolboy error" in not consulting advisers and warns a successful review will cause "havoc".

Regulatory Legal is pursuing a judicial review against the FSCS's decision to levy the investment intermediation sub-class to meet the £70m costs of the defaults. Claims from Keydata will cost investment advisers £43m while failed stockbrokers Pacific Continental and Square Mile will cost £27m. The challenge is on three grounds: a lack of consultation, incorrect allocation of sub-class and the 30-day deadline advisers have been given, from the end of March, to find their share of the levy. Regulatory Legal has launched a campaign group to challenge the FSCS's decision and is looki...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Sector divided on Reeves' pullback on Cash ISA reform

Sector divided on Reeves' pullback on Cash ISA reform

‘A big win for defenders of a broken system’

Sorin Dojan
clock 11 July 2025 • 2 min read
FCA flags progress on internal DEI targets and urges action on Consumer Duty

FCA flags progress on internal DEI targets and urges action on Consumer Duty

According to the FCA report 2024-2025

Sahar Nazir
clock 11 July 2025 • 2 min read
FCA reviewing client categorisation rules to distinguish retail investors from the pack

FCA reviewing client categorisation rules to distinguish retail investors from the pack

Goal of 40 more initiatives to be completed by year end

Eve Maddock-Jones
clock 10 July 2025 • 2 min read