SimplyBiz joins fight over FSCS Keydata levy
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SimplyBiz chairman Ken Davy has hit out at the Financial Services Compensation Scheme interim levy over Keydata, insisting it must be challenged.
Source: Huddersfield Daily Examiner
Last week Aifa said it will not pursue legal action against the Compensation Scheme’s £80m levy, based on current legal advice it sought which suggests a challenge is unlikely to stand up in court.
Money Marketing revealed last month that Law firm Regulatory Legal had issued proceedings as a first step to launching a judicial review against the FSCS £80m interim levy.
Davy (pictured) says while he is a keen supporter of Aifa, the interim levy must be challenged.
He says: “Whether the fault lies with the judgements made by the FSCS in applying the levy or the FSA in permitting Keydata to have the wrong classification by authorising it as an investment intermediary, is for others to determine. The reality remains however that Keydata was, for all intents and purposes, a product provider and should be classified as such.
“In the case of Keydata the evidence that it was a product provider is overwhelming and I call on the FSA and the FSCS to reassess their judgements as a matter of urgency.”
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Readers' comments (7)
Mr Smug | 11 May 2010 1:30 pm
Ken's right on many things and this is one of them. Don't let them get away with it.
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Exasperated me | 11 May 2010 2:01 pm
Well done Ken, stand up and fight, get your wallet out.
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Anonymous | 11 May 2010 2:04 pm
Call that a Levy?
Wait until the rest of Keydata implodes.
Then there will be a further bill for another £350 million!
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Evan Owen - IFA Defence Union (for now) | 11 May 2010 2:44 pm
Yes Mr Anonymous, this is just the tip of the iceberg.
I'm all for a good fight.
Let's look at the choices here:
1. Follow Gareth Fatchett through the courts, he gets paid and you may get a hefty bill for costs if you lose. If you win you cry YIPPEE! and watch it start al over again only to see the FSCS arrive at the same conclusion...
2. Make sure that you are properly represented during the next review of the compensation scheme. To date it has been a bit of a shambles has it not?
3. Demand that the FSA review the FSCS decision, it was the regulators who created it after all is said and done.
4.
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Incompetent Regulators Awards Team | 11 May 2010 5:18 pm
Win lose or draw, IFAs lose always as we pick up our bills, our legals fees and the fscs bills and legal fees aswell. So the bigger the beating we may give the fscs, the more we pay. Great system isn't it? Created by Mr No More Boom & Bust man.
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Incompetent Regulators Awards Team | 12 May 2010 2:30 pm
We are changing our name to the Illiterate Advisers Awards Team.
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Incompetent Regulators Awards Team | 12 May 2010 4:50 pm
Name change due to same qualifications communicative skills and levels as FSA!
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