Aifa says advisers suffered “a real blow” last week when the judicial review of the Financial Services Compensation Scheme’s Keydata levy for IFAs was dismissed.
It says it recognises the disappointment of those who pursued the case, after the review, led by solicitors Regulatory Legal, failed in a judgment given at Birmingham High Court last week.
The review was launched by overn 200 IFAs last year after Aifa told members in May it would not pursue its own case as it had been advised by lawyers that such a challenge would fail.
Aifa director Robert Sinclair says: “Aifa recognises the disappointment that we know those who pursued this case through Regulatory Legal will be feeling. It is a real blow for members that the legal challenge has failed as all IFAs now face further costs.
“Aifa consistently challenged the Keydata decision and argued for the FSCS to make its reasons and legal advice public.
Our efforts to influence the decision were made through both formal and informal engagement and this was clearly set out in evidence.” Compliance consultant Adam Samuel says that the review’s “rather soggy defeat” was “another misguided trip to court for the intermediary sector”.
He says: “The independent advice sector has to appreciate that its salvation lies in effective lobbying, not litigation – a lesson learnt by Aifa, which rightly refused to participate in the Keydata case.”