Advisers have reported staggering increases in their annual Financial Services Compensation Scheme bills, by as much as 756 per cent.
Firms are facing a sharp hit to their profits as the FSCS has today shared out the £93m cost to intermediaries of its interim levy, which mainly covers the failure of Keydata unit Lifemark. Last year’s FSCS interim levy is £80m.
But neither the FSCS nor the FSA could provide an explanation of the scale of the rises reported to Money Marketing.
Philip J Milton & Company managing director Philip Milton [pictured] says his bill was £6,009 last year but today’s bill is 756 per cent higher at £51,459.
He says: “We are not a fund manager in the sense of selling funds and we never promoted a single Keydata product or structured product. It is disgraceful.”
Informed Choice chief executive Nick Bamford says his bill has shot from £1,300 last year to £10,012 today – a 670 per cent rise.
Bamford says: “These IFAs that recommended Keydata are commission-grabbing gits and we are paying for it.”
Skerritt Consultants has seen its bill more than double from £11,000 to £25,100.
Head of investments Andy Merricks says: “We are clearly not happy as it effectively means we have become victims of our own success.
“Keydata and the like are products we had nothing to do with and we are basically subsidising the miscreants of the industry. I wonder who is paying for the latest FSCS ad campaign?”