FSCS

An independent adviser has been told he will not have to compensate a client he recommended invest in a Keydata product, even though an ombudsman ruled he had given unsuitable advice.

An irate adviser has said the latest FSCS interim levy is tantamount to mafia-style "extortion" and thinks clients - not advisers - should pay for firms' failures through an investment warranty.

The Association of Independent Financial Advisers (AIFA) has hit out at "spiralling" fee rises from the Financial Services Authority (FSA), Financial Ombudsman Service (FOS) and Financial Services Compensation Scheme (FSCS).

Clients of troubled spreadbetting firm Worldspreads have moved a step closer to getting funds back through the Financial Services Compensation Scheme (FSCS) after administrators KPMG began sending out final statements.

CONDENSED NEWS

The FSA's director of supervision at its conduct business unit, Clive Adamson, told an investor in the Arch cru funds that complaining to their IFA was the "best course of action" in order to get some form of redress, as the scandal broke in 2009.

Proposed changes to the Financial Services Compensation Scheme (FSCS), opening up eligibility to more parties, are likely to lead to increased compensation costs and higher levies.

Investors in stricken life settlements fund ARM Asset Backed Securities (ARM) are believed to be considering a class action lawsuit against the firm for the recovery of their assets.

Insolvency practitioner Probitas has been instructed to begin winding up pension specialist Rockingham Independent.

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