FSCS sets aside extra millions for Keydata recoveries

clock

The Financial Services Compensation Scheme (FSCS) is proposing to budget more than £7m for expenses related to recoveries in 2013/14, including from advisory businesses who recommended Keydata bonds.

The Financial Services Authority (FSA) consults annually on the FSCS's management expenses levy limit (MELL), which relates to all non-compensation costs the Scheme expects to incur to deliver its functions. For 2013/14, the levy is expected to comprise £7.2m to pursue recoveries including in respect of Keydata. After paying out hundreds of millions in compensation to investors in Keydata, the FSCS is in the process of recovering costs from both the assets of Keydata and the underlying investments, and from advisory firms who were responsible for the sales of the bonds. It is also ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

New regulations and challenges in the EU and UK: What are advisers' next moves?

New regulations and challenges in the EU and UK: What are advisers' next moves?

Regulatory simplification vs expanding oversight

Bernadine Reese
clock 16 July 2026 • 4 min read
FCA investigates 11 potential Consumer Duty breaches including small IFA

FCA investigates 11 potential Consumer Duty breaches including small IFA

Publishes good practice review

Michael Nelson
clock 13 July 2026 • 4 min read
Advertising watchdog censures whisky cask and gold investment firm

Advertising watchdog censures whisky cask and gold investment firm

ASA upholds four complaints against Cap Group

Isabel Baxter
clock 08 July 2026 • 3 min read