The cost of compensating Keydata victims is likely to hit £440 for the ‘typical' adviser firm in the appropriate sub-class, according to AIFA calculations.
The association also reveals the FSCS sought legal advice before opting to allocate Keydata's £70m default costs to the investment intermediation sub-class, which includes many adviser firms and to which Keydata belonged. Though AIFA's £440 estimate is significantly lower than earlier claims costs could rise to £10,000 per adviser, the organisation says its members are being ‘taxed' for the failure of poorly-run organisations. AIFA says its analysis suggests the cost for full investment firms will be around £1,100. However, the average AIFA member is only exposed to investment on ...
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