AIFA condemns FSCS funding proposals

Key changes proposed by the Financial Services Authority (FSA) include increasing the levy threshold from £100m to £150m per year for the investment intermediation sub-class and ending the cross-subsidy between some providers and intermediaries. However, AIFA has expressed concerns about both these changes and has also called on the regulator to reconsider a product levy and pre-funding as alternative to the current system. In its detailed response to the FSA's consultation, AIFA suggested the regulator has not taken full stock of the impact the increase in the threshold would have on...