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

Cash ISA allowance cut risks hardening saver/investor divide, advisers warn

Cash ISA allowance cut risks hardening saver/investor divide, advisers warn

Govt policy shift reignites debate around role of cash ISAs

Sahar Nazir
clock 28 January 2026 • 5 min read
Depledge Strategic Wealth Management backs CISI financial planning push

Depledge Strategic Wealth Management backs CISI financial planning push

‘Financial planning is for every week’

Jenna Brown
clock 28 January 2026 • 2 min read
What a classic '80s movie tells us about today's language of financial advice

What a classic '80s movie tells us about today's language of financial advice

'Forty years is a long time in film. Even more so in financial services'

Roger Brosch
clock 27 January 2026 • 4 min read