IMA: fund managers left on the hook over FSCS funding

clock

The Investment Management Association (IMA) has called on the Financial Services Authority (FSA) to increase the amount insurers and banks contribute to the Financial Services Compensation Scheme (FSCS) after warning fund managers faced cross-subsidies which were three times higher than the other institutions.

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...

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

Advertising watchdog upholds complaint against car rental 'investment' firm

Advertising watchdog upholds complaint against car rental 'investment' firm

Second complaint to be upheld against the business in just over a month

Jen Frost
clock 07 May 2025 • 4 min read
FCA seeks feedback on cryptoasset trading regulation

FCA seeks feedback on cryptoasset trading regulation

Aims to build confidence in the sector

clock 02 May 2025 • 1 min read
Schroders becomes first to adopt all four SDR labels

Schroders becomes first to adopt all four SDR labels

Includes 'Sustainability Mixed Goals' label

Linus Uhlig
clock 27 January 2025 • 1 min read