FSCS wrong to levy advisers for Keydata claims, court hears

Laura Miller
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The FSCS decided to allocate Keydata compensation claims to the investment intermediation sub-class before consulting the industry and ignored calls for a review into its decision, a court heard today.

The claim was made during a judicial review hearing this morning in Birmingham into why £33m of an £80m interim levy was charged by the FSCS to its D2 sub-class in March 2010, following the failure of Keydata almost a year earlier. Anthony Speaight QC, acting on behalf of Regulatory Legal and for ABS Financial and others, dismissed a statement by the FSCS in December 2009 in which it said it had "considered carefully" which sub-class to put Keydata in after detailed discussions with industry representatives. The court heard how, in the months following the FSCS's announcement, AIFA an...

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