Other Citywire websites
Stay connected:

View the article online at http://citywire.co.uk/new-model-adviser/article/a654562

Fund managers hit with £31m FSCS bill after funding shortfall

by Michelle Abrego on Jan 29, 2013 at 13:44

Fund managers hit with £31m FSCS bill after funding shortfall

The Financial Services Compensation Scheme (FSCS) has hit fund managers with a £31 million bill after refunds related to its £326 million Keydata levy created a shortfall in funding.

Advisers will have to pay a further £300,000 as part of the revenue-raising exercise. It follows  around £71 million of refunds made to fund managers and advisers who resubmitted their tariff data, which is used to calculate levy contributions.

The FSCS said 566 fund managers and 394 advisers would be affected by the bill. Four fund managers will have to shell out more than £1 million each.

Around half of the firms billed will be required to pay between £50 and £1,000, and 285 will pay between £1,000 and £10,000. The FSCs said it would not solicit payments from those owing less than £50.

FSCS chief executive Mark Neale said: ‘This levy will close the tariff data resubmission and the 2010/11 interim levy truing-up exercise.

‘This has been a highly complex issue and involved reviewing scores of requests from firms to resubmit their correct tariff data. We are pleased the issue is now closed and thank firms for their patience while we completed the process.’

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Opportunities emerge as production moves back home

As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

A spotlight on Alastair Mundy

Alastair Mundy met Citywire's Daniel Grote at the London Stock Exchange Studios for a detailed interview about the Investec Cautious Managed fund.


Lucky escape: when firms avoid FCA fines

by Jun Merrett, Michelle Abrego on Jul 24, 2014 at 15:31

Sorry, this link is not
quite ready yet