View more on these topics

IFAs could get cashback as N&P pays out Keydata clients

Advisers may get money back from their last Financial Services Compensation Scheme interim levy after Norwich & Peterborough Building Society agreed to pay £57m in compensation to Keydata investors.

This week, N&P said it will compensate its Keydata Lifemark clients in full and repay the FSCS for compensation that has already been paid out to its clients.

The FSCS says this may have implications for firms which have paid the interim levy, which was raised mainly to cover the cost of compensation to investors in Keydata unit Lifemark.

In January, the FSCS announced the interim levy of £326m, with advisers paying £93m and fund firms £233m. The adviser levy includes FSCS compensation costs of £86m to Lifemark investors.

N&P is writing to its Keydata clients, inviting applications for ex gratia payments to transfer rights to the investment to N&P. Payments will see the return of the original investment plus interest.

Clients who have previously claimed through the FSCS can still apply for payments through N&P as they may qualify for interest or have a claim above the £48,000 FSCS limit.

The news of the payments follows protracted talks between the FSA, the FSCS and N&P.

N&P chairman Gordon Horsfield says: “The society has been deeply concerned for its customers who have suffered following Keydata’s failure and is very sorry for the hardship and anxiety that has occurred.”

An FSCS spokesman says: “We are considering what this means for levy payers and will liaise with the relevant trade organisations on the issue.”

The FSCS set a precedent in December 2007 when it issued a £40m levy refund to the general insurance provider sub-class after recoveries from failed GI providers and lower than expected compensation payments.



Margaret Cole to temporarily head FSA’s conduct unit

FSA head of enforcement Margaret Cole will become temporary head of the new conduct business unit when it informally divides next month. Cole (pictured) will take on the role of managing director of the conduct business unit until September when Martin Wheatley will take over. FSA chief executive Hector Sants says: “I am delighted that […]

Joe Cohen

Joe Cohen set up First Action Finance in 2005 and now the company has 32 mortgage brokers, seven IFAs, one general insurance adviser and funds under management of £30m. How has Cohen managed to grow an intermediary business through a tough economic and regulatory environment? “Our business operates as a one-stop shop,” he says. “We […]

Out of context

“I’m like a shark in a puddle.”Lead-generator LeadPoint director of marketing and partnerships Justin Rees on how he is more than just a big fish in a little pond. “Stop asking me questions, I preferred it when you were hitting me!”Investment Quorum chief executive Lee Robertson does not pull any punches when his boxing trainer […]

Derek Stuart: where to find value in the UK?

Derek discusses a number of Œself-help stories as examples of where he is finding good opportunities in the UK With the FTSE trading at historically high levels, many investors have questioned whether UK equities continue to offer value. But, as Derek points out, the headline figures mask many opportunities at a sector level. He has […]


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