IMA could seek judicial review of FSCS levy
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The Investment Management Asso- ciation is considering bringing a judicial review of the Financial Services Compensation Scheme interim levy on behalf of its members.
An IMA spokeswoman says a review is one of the options in response to the £326m interim levy announced by the FSCS last month.
Investment fund management companies face an interim levy of £233m while advisers face £93m, mainly to cover compensation costs of investors in Lifemark.
The IMA spokeswoman says: “We have not made a decision as yet, as we are still engaging with the FSA and the FSCS on this. We are considering all the options, including a judicial review, as to what the next step will be.”
She adds that a review may not be necessary, depending on whether Lifemark bonds could be structured to achieve some asset recovery, in which case the IMA hopes fund managers will recoup some of the money they have contributed to the interim levy.
Evolve Financial Planning director Jason Witcombe believes that the FSCS should be funded through some form of product levy.
He says “I have no idea about whether or not trade bodies would feel the case is strong enough to launch a review but, as an industry, I do not think this is the kind of thing we should take lightly and just put up with as it does not feel particularly fair. I am not entirely convinced that it should be fund managers or advisers that are paying for this.”
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