The Financial Services Compensation Scheme (FSCS) has said it expects to raise a supplementary levy on investment advisers before the end of the current levy year, to make up for losses incurred by the failings of ARM bonds and their distributor Catalyst.
FSCS chief executive Mark Neale said the losses incurred by ARM investors would likely be in "the tens of millions of pounds". Though the FSCS did not detail the amount of the latest levy, it will likely take investment advisers' total interim bill beyond £300m since the 2008-2009 levy year. To date, advisers have paid £290.97m on top of their annual levies to fund compensation claims. Of this, almost £20m has gone on management expenses alone. Neale said in a statement: "There is still a good deal of uncertainty about both [Keydata and Catalyst], so we cannot yet provide robust gu...
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