IMA may launch judicial review of FSCS levy

4 February 2011 2:59 pm | By Natalie Holt

The Investment Management Association 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 on table in response to the £326m interim levy announced by the FSCS last month.

Investment fund managers face an interim levy of £233m, while advisers face an interim levy of £93m, mainly to cover the compensation costs of investors in failed Keydata unit 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 at the moment.

“We are considering all 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.

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