The trade body says it is taking further legal advice on the merits of challenging the interim levy placed on investment intermediaries for the failures of Keydata, two stockbrokers and Lehman-backed structured product providers. But it says payments should be made as they become due at the end of April as the levy is a regulatory fee.
Aifa says the maximum cost for an adviser with 100 per cent investment business is £1,335. Firms with one adviser and a business split of 20 per centinvestment/80 per cent life and pensions will pay around £267, rising to £1,602 for six advisers and the same split.
Firms with one adviser and 50 per cent investment/50 per cent life and pensions will pay £667, rising to £4,005 for firms with six advisers. Advisers can use the Premium Credit instalment arrangement to spread the cost of the fees.
Law firm Regulatory Legal has received around 300 commitments of support to launch a judicial review against the levy but says it may require 1,000.
Partner Gareth Fatchett says: “It is about laying down a marker that IFAs will not accept anything foisted on to them.”
Speaking to Money Marketing last week, director general Chris Cummings (pictured) said: “We are looking at two aspects. First, has the FSCS observed due process? It seems they have, which is unfortunate. The wider issue is in terms of a regulatory failure by the FSA to subject Keydata to sufficient authorisation checks and ongoing supervision – were they failing to portray themselves in a clear, fair and not misleading way? This is so obviously a bill the IFA community should not be paying and puts in doubt the operational legitimacy of the compensation scheme.”