FSCS wrong to levy advisers for Keydata claims, court hears

Laura Miller
clock • 2 min read

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...

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 Your profession

CII: Vulnerable client management is 'an opportunity for growth'

CII: Vulnerable client management is 'an opportunity for growth'

Firms can expand potential client bases

Isabel Baxter
clock 07 April 2026 • 2 min read
Common language used by advisers triggers anxiety and distrust among retirees

Common language used by advisers triggers anxiety and distrust among retirees

Product-led communication one of the biggest drivers of mistrust

Laura Purkess
clock 01 April 2026 • 1 min read
Advisers: Are you even taking your own advice?

Advisers: Are you even taking your own advice?

Exploring the expenditure consolidation conversation

Nick Ryan
clock 25 March 2026 • 4 min read