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Tenet hits out over 'reckless' £150m FSCS threshold
by Michelle Abrego on Feb 01, 2013 at 11:40
Network Tenet has hit out at the Financial Services Authority's (FSA) funding proposals for the Financial Services Compensation Scheme (FSCS) calling the move to increase IFAs' levy threshold to £150 million ‘potentially reckless’.
Earlier this month, the FSA rubber stamped plans to increase the FSCS levy threshold for investment intermediaries to £150 million from £100 million.
In its funding review of the FSCS the regulator rejected a pre-funded model, a product levy, or reorganisation of the funding sub-classes.
Tenet group distribution and development director Keith Richards, said: 'It is potentially reckless to continue with a model so clearly flawed and ignoring many of the concerns and alternative solutions offered when there is a chance to remedy the problem.
'Tenet has asserted for some time that the entire regulatory and compensation funding programme is at risk of destabilising its own foundations and that the unfair burden continues to be placed on the intermediary sector.'
Tenet advisers have been active in lobbying their local MPs over the past year in support of a fairer compensation levy.
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