An IFA with client money caught up in the Keydata debacle has called on the FSCS to justify its proposed additional industry levy.
Its planned hike was intended to cover pay-outs for the failed investment vehicle but this now appears too high in light of its policy to decline more costly non-ISA claims, IFA Andrew Swallow says. In its Plan and Budget 2010/11, the FSCS proposed an interim ‘investment intermediation' levy of £70m to cover "significant [additional] costs resulting from new defaults including Keydata Investment Services Limited". Keydata claims, resulting from the firm being forced into administration last June, are expected to cost investment advisers £43m of the total levy, or £440 per adviser fir...
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