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

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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...

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