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.’