£30M earmarked to repay Keydata charges
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A total of £30m has been set aside by the Financial Services Compensation Scheme to repay firms who have been overcharged following the £326m interim levy raised to pay for Keydata claims.
This year, the FSCS changed the way it calculates levies for advisers from the number of registered individuals at a firm to the amount of eligible income it generates. Many advisers complained their levy had risen dramatically due to mistakes they made in submitting their data. In February, the FSA and the FSCS sent an open letter telling firms they could resubmit their tariff data for the 2010/11 levy period.
Advisers paid £93m of the £326m levied by the FSCS in January while fund companies paid £233m. In its annual report and accounts, published last week, the FSCS reveals firms have applied for refunds totalling £80m, based on resubmitted tariff data.
It says: “Based on the best information available to directors, provision for £30m has been made in the accounts. The final amount that is likely to be repaid is uncertain and may potentially result in a material adjustment to the provision being required. Any resulting adjustment to the levy is likely to be made in 2011/12.”
An FSCS spokeswoman says no additional levy for Keydata has yet been announced. However, the FSCS is in the process of calculating if one is needed based on the total number of Keydata claims, the final levy amount, what is refunded and what is recovered.
The scheme paid out a total of £535m in 2010/11, with £214m for Keydata investors.
Jamieson Financial Management principal Bruce Jamieson says: “I am cynical about whether firms will see any of their money back. I expect the FSCS will hold the money back against future levies.”
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