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Huge hike for fund firms

The Financial Services Compensation Scheme is forcing fund firms to pay 27m to cover the risk of a fund management group going bust this year.

Investment Management Association chief executive Richard Saun-ders was surprised by the massive hike and has called for a meeting with FSCS chief executive Loretta Minghella to discuss the rise and ask how the figure was calculated.

In its annual plan and budget for 2005/06, the FSCS raised its levy for fund companies from 100,000 to 27m. All fund firms have seen their levy soar regardless of whether they have offered split-capital or structured products.

Saunders says: “We have called a meeting because we are not aware of any company going into liquidation and we want to know what information they have to make this decision.”

FSCS spok-eswoman Heather Tilston says: “We are expecting a significant increase in claims in this area against fund managers. We are making provisions for a company in this group to go in default of the scheme.”


That’ll be the data

I am about to give you a lot of personal information in order for you to provide me with independent financial advice. How do I know this information is safe and will not to be used for other purposes?

Julian Gibbs

One sector which has been neglected by many IFAs is European smaller companies. This is one area where good fund management really counts because smaller companies all over Europe are still much underresearched.

Benefit match

Clerical Medical retirement planning manager Steve Meredith looks at the changes for taking pension benefits.


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