Keydata had no discretion to buy or sell bonds and so was not involved in investment management and could not be included in that FSCS sub-class for the purposes of recovering compensation costs, a court heard today.
At a judicial review hearing in Birmingham, legal representatives for the compensation scheme argued it was a "proper and lawful" decision that compensation claims fell instead on the D2, or investment intermediation, sub-class. Lawyers representing the FSCS said Keydata had only administrative discretion to invest money as the agent of investors, and so could not be classed as an investment manager. Advisers were hit with an £58m interim levy in March this year to cover compensation costs relating to claims against Keydata Investment Services, Square Mile Securities, Pacific Continen...
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