The Investment Management Association (IMA) has issued a series of alternatives to the Financial Services Authority's (FSA's) "perverse" proposed changes to the Financial Services Compensation Scheme (FSCS), having previously criticised its unfair treatment of asset managers.
In July, the regulator published proposals to eliminate cross-subsidies between asset managers and deposit takers and offer more certainty in the level of fees they pay towards the FSCS. Costs would be split between deposit takers and insurers, who would be regulated by the Prudential Regulation Authority (PRA). Asset managers would be regulated by the Financial Conduct Authority (FCA), with no cross subsidy between the two. The IMA said this means banks and insurers face no potential liability in the event of mis-selling of their products by an intermediary, only making them liable i...
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