The FSCS, Keydata and the domino effect

The FSA has proposed a ban on traded life policy investments (TLPIs), arguing the products “provide no benefit to investors”. This total censure comes hot on the heels of a decision by the FSCS to recover some of the £327m it paid out in the highest profile failure of the TLPI market 
Keydata, by pursuing through the courts advisers who recommended it. Emotions are running high. Time then for a sober reflection on what the two decisions mean. In a nutshell, it is very likely all advisers will pay a financial price for TLPIs’ troubled existence in the market place. The FSCS’ pursuit...