FSCS claws back £100m from Keydata collapse; returns half to fund managers

Laura Miller
clock

The Financial Services Compensation Scheme (FSCS) has recovered £100m from the estate of failed traded life settlement firm Keydata, and the advisers who mis-sold it, and will rebate half the sum to fund management levy payers.

Fund managers were forced to pay £233m towards the cost of compensating some 20,000 Keydata investors after the firm collapsed in 2009, because the investment advice sector, which was levied £93m, was unable to meet the full costs of the failure. Recovery work by the FSCS over the last two years gave it £30m to offset the costs of compensation and the costs of recoveries, which it said has benefited intermediaries though a lower levy. Now fund managers will see a rebate on their contribution, receiving £50m over the course of December. When the FSCS compensates investors it takes o...

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 Investment

Advisers expecting more of asset managers since Consumer Duty

Advisers expecting more of asset managers since Consumer Duty

‘We actually need to understand one another better’

Hope Coumbe
clock 27 March 2024 • 1 min read
Fears tech limitations could stall MPS on its upward trajectory

Fears tech limitations could stall MPS on its upward trajectory

‘There have been a few changes and challenges around growth in general’

Hope Coumbe
clock 27 March 2024 • 1 min read
Partner Insight: Beyond 60/40

Partner Insight: Beyond 60/40

Invesco
clock 27 March 2024 • 5 min read