FSCS says Keydata levy will fall on investment advisers

Scott Sinclair
clock

A controversial interim levy to cover the collapses last year of Keydata and two stockbrokers will be applied to the investment intermediation sub-class despite widespread opposition, the FSCS has confirmed.

The total interim levy for 2009/10 has, however, been cut from £90m to £80m, with the amount relating to the failures of Keydata, Pacific Continental Securities and Square Mile Securities reduced from £70m to £58m. But confirmation the levy will fall on the investment intermediation sub-class - despite, according to AIFA, Keydata presenting itself as an investment manager - will anger advisers. Despite the overall interim levy dropping £10m, the structured product-related charge has climbed £2m to £22m. Revised projections mean the FSCS will not need as much money as it initially ...

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 Investment

Darius McDermott: The line between resilience and risk

Darius McDermott: The line between resilience and risk

'Trump has, for the most part, chickened out'

Darius McDermott
clock 29 July 2025 • 5 min read
Watch Professional Adviser's Working Lunch with Baillie Gifford - A compelling opportunity: The UK is on offer

Watch Professional Adviser's Working Lunch with Baillie Gifford - A compelling opportunity: The UK is on offer

Catch up on the discussion

Professional Adviser
clock 29 July 2025 • 1 min read
Advisers look to capital accumulation in Q2 2025

Advisers look to capital accumulation in Q2 2025

Interest in inflation protection nudges up

Jen Frost
clock 18 July 2025 • 3 min read