FSA 'must consider impact of FSCS levies on firms'

The current FSCS process of levying other ‘business types' once a compensation limit has been breached in one sector could cause firms to become financially unstable, it argued. In January 2011, investment management firms were required to contribute £236m towards the cost of compensating investors who lost money in the collapse of Keydata. This was because the claims went over the £100m limit of contributions allowed from the intermediary sector. According to the Panel, which represents every section of the regulated community and advises the FSA on policy, the regulator should st...