FSA rules out FSCS class changes despite Keydata uproar

Under the existing system, advisers have had to contribute to compensating Keydata customers because claims which arose as a result of its marketing material fell within the investment intermediation sub-class. This was despite the widely-held view that Keydata was a product provider which designed and distributed structured investment products. In a consultation paper on a new funding model for the FSCS, the FSA detailed why it would keep the current classes. One alternative, which could save advisers payouts in the case of similar failures, would have been to separate out firms s...