The chief executive of the FSA has moved to reassure adviser firms the worst Keydata offenders will face further regulatory action, including being fined.
Hundreds of distributors have been up in arms at having to pay a share of the latest FSCS interim levy, including compensation costs of £93m relating to the failure of Keydata. They argue they did not recommend Keydata products and therefore should not have to pay compensation costs. But Hector Sants pledged the FSA may take "further regulatory action in respect of individual live distributor firms" who did recommend Keydata investments. He said he could not disclose details of any action the FSA is taking due to confidentiality restrictions. The promise was in a letter to Informed...
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