IMA: fund managers left on the hook over FSCS funding

In a letter to the FSA, the IMA proposed banks, as well as life and general insurers, should see the amount they contribute to any cross-subsidy raised substantially. Under the current proposals, organisations regulated by the soon-to-be-created Prudential Regulation Authority - covering firms such as banks and insurers - will contribute to the FSCS on a fee basis. However, firms falling under the scope of the Financial Conduct Authority  alone - which includes asset managers - will have to pay an amount dictated by an affordability calculation. The IMA said such a set-up could see...