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Daily Insurance Industry News
Tuesday 21st of May 2019
January 22, 2011

FSCS decrees £326m levy over investment intermediary failings

by Gill Montia

Story link: FSCS decrees £326m levy over investment intermediary failings

Investment intermediaries and investment fund managers are being warned that they face an interim levy of £326 million before the end of the financial year, to cover the costs of claims against Keydata Investment Services and other firms.

The Financial Services Compensation Scheme (FSCS) has announced that the money will be raised from Investment Intermediation and the Investment Fund Management sub-classes (SD02 and SD01).

The Scheme also advises that of the £20 million levy raised on the Investment Intermediation sub-class earlier this year, £14 million related to compensation costs, meaning a further £86 million can be raised before the £100 million annual threshold for this sub-class is reached.

In the latest fundraising, firms in the SD01 Investment Fund Management sub-class will pay £233 million and firms in the SD02 Investment Intermediation sub-class will pay £93 million. (£7 million of this is management expenses).

Keydata, which designed and distributed structured products for individual investors, was placed in administration in June 2009.

 

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