FSCS says Keydata levy will fall on investment advisers

Scott Sinclair
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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 ...

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