View more on these topics

Aifa calls for consultation to calculate FSCS refunds

Aifa has called for a Financial Services Compensation Scheme consultation on how money recouped from Norwich & Peterborough Building Society for Keydata investors should be refunded to levy-payers.

N&P last week agreed to pay £57m to Keydata investors, including repayments to the FSCS for compensation that has already been paid out to N&P clients.

The FSCS said this may have implications for firms that have contributed towards the £326m levy, raised mainly to cover the cost of compensation related to Keydata unit Lifemark. Advisers contributed £93m and fund managers paid £233m.

Aifa director general Stephen Gay says: “The rules are clear that this money should reduce the levy on the industry but we believe it is ambiguous at present as to how this refund sho- uld be allocated.

“We are therefore calling on the FSCS to formally consult on how and to whom this money should be refunded. Advisers have been hit extremely hard by the recent levy. The FSCS has an opportunity to ease the burden on firms.”

But Philip J Milton & Company, which saw its interim levy rise from £6,009 in 2010 to £51,459 this year, says there is no need for consultation.

Managing director Philip Milton says: “I would think it is quite easy to work out. The FSCS should be able to cal- culate the amount of the interim levy that relates to Key- data and then calculate the amount that relates to N&P customers. I do not think there is a need to consult, it is a case of doing the maths.”

Evolve Financial Planning director Jason Witcombe says: “I would have thought that the amount the FSCS has overbilled for would be a simple amount to calculate.”


Colin Lawson

Equilibrium’s managing partner is convinced the future of the intermediary industry lies with technology and the company’s modern approach to advice has already put it ahead, with the firm a runner-up at the Money Marketing awards in the small company IFA of the year category.

The Isa silly season

Isas are available throughout the year but many investors leave it to the last moment. So this week I thought I would give some thought to the so-called Isa season, particularly at a time of stockmarket volatility caused by geopolitical problems in Libya, continuing debt problems in Europe and the tragedy of the Japanese earthquake. […]

Polar Capital poised to unveil financials fund

Polar Capital plans to launch a fund investing in global financial stocks and may also alter its European financials fund following its acquisition of Him Capital, a specialist financials investor. The new Polar Capital financial opportunities fund will be managed by John Yakas and regulated under the European Union Ucits III funds directive. Yakas, who […]

Pursglove and Wagstaff will not join Henderson

Richard Pursglove and Phil Wagstaff, the respective heads of UK retail and global distribution at Gartmore, will not join Henderson upon the competition of the Gartmore acquisition on Monday. Pursglove joined Gartmore from Cazenove Capital Management in January 2008, while Wagstaff joined as global head of distribution from New Star in October 2007. Mark Skinner, […]

Life cover for life

When someone mentions whole of life plans, most people will think of a niche product that serves as an inheritance tax planning tool for high-net-worth clients. And it’s really not surprising they’ve been pigeonholed in that waybecause before the arrival of RDR in 2013, that’s more or less exactly what they were. For advisers thinking […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm