IFAs lose Keydata judicial review against FSCS

Laura Miller
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The FSCS was right to levy investment intermediaries for the collapse of Keydata, a High Court judge has ruled, dashing adviser hopes of a £32m refund.

Outraged investment advisers from 217 firms last year secured a judicial review into the FSCS's decision to hit them with the cost of Keydata's failure, which is set to run to more than another £100m this year. They argue the investment firm, which was forced into administration by the FSA in June 2009 on grounds of insolvency, presented itself as an investment manager, not an intermediary, a claim backed at the time by AIFA. But in Birmingham High Court, Judge Justice Beatson today agreed with FSCS lawyers, who said the scheme was "proper and lawful" to class Keydata as an intermedia...

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