AIFA defends actions as £58m Keydata levy row rumbles on

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AIFA is reassuring members it has not given up the fight to ensure intermediaries do not foot the £58m compensation bill to cover the failure of investment ‘provider' Keydata, following veiled criticisms about its apparent inaction.

Director general Chris Cummings says AIFA is putting "huge pressure" on the FSA to re-think its decision to levy advisers for the collapses last year of Keydata Investment Services and two stockbrokers. The £58m interim levy, paid by advisers at the end of April, will also compensate clients of Square Mile Securities, which defaulted in February last year, and Pacific Continental Securities. AIFA abandoned plans to challenge the FSCS levy via a judicial review earlier this month after seeking independent legal advice. But IFA support firm SimplyBiz, while declaring its "strong" sup...

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