The Financial Services Compensation Scheme (FSCS) is proposing to budget more than £7m for expenses related to recoveries in 2013/14, including from advisory businesses who recommended Keydata bonds.
The Financial Services Authority (FSA) consults annually on the FSCS's management expenses levy limit (MELL), which relates to all non-compensation costs the Scheme expects to incur to deliver its functions. For 2013/14, the levy is expected to comprise £7.2m to pursue recoveries including in respect of Keydata. After paying out hundreds of millions in compensation to investors in Keydata, the FSCS is in the process of recovering costs from both the assets of Keydata and the underlying investments, and from advisory firms who were responsible for the sales of the bonds. It is also ...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes