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

Andrew Goodwin: Who holds the reins of the targeted support bandwagon?

Andrew Goodwin: Who holds the reins of the targeted support bandwagon?

'We have the ability to at least play a meaningful part in shaping our own destiny'

Andrew Goodwin
clock 27 October 2025 • 5 min read
One in five wealthy over-55s unaware of IHT on pensions change

One in five wealthy over-55s unaware of IHT on pensions change

IHT on pensions comes into effect from 6 April 2027

Sahar Nazir
clock 27 October 2025 • 2 min read
Why the government must invest in confidence to unlock Britons' wealth potential

Why the government must invest in confidence to unlock Britons' wealth potential

Confidence is key to unlocking investment potential

Brian Byrnes
clock 27 October 2025 • 4 min read