View more on these topics

IMA could seek judicial review of FSCS levy

The Investment Management Asso- ciation is considering bringing a judicial review of the Financial Services Compensation Scheme interim levy on behalf of its members.

An IMA spokeswoman says a review is one of the options in response to the £326m interim levy announced by the FSCS last month.

Investment fund management companies face an interim levy of £233m while advisers face £93m, mainly to cover compensation costs of investors in Lifemark.

The IMA spokeswoman says: “We have not made a decision as yet, as we are still engaging with the FSA and the FSCS on this. We are considering all the options, including a judicial review, as to what the next step will be.”

She adds that a review may not be necessary, depending on whether Lifemark bonds could be structured to achieve some asset recovery, in which case the IMA hopes fund managers will recoup some of the money they have contributed to the interim levy.

Evolve Financial Planning director Jason Witcombe believes that the FSCS should be funded through some form of product levy.

He says “I have no idea about whether or not trade bodies would feel the case is strong enough to launch a review but, as an industry, I do not think this is the kind of thing we should take lightly and just put up with as it does not feel particularly fair. I am not entirely convinced that it should be fund managers or advisers that are paying for this.”

Recommended

Bannister to take over as Phoenix chief

Clive Bannister is to replace Jonathan Moss as chief executive of Phoenix Group. Bannister, formerly group managing director of insurance and asset management at HSBC, joins Phoenix as group chief executive. Phoenix says the board has agreed with Moss “that this is the right time for there to be a change of leadership”. It says […]

Lloyd George’s Ko to retire after 29 years in industry

Lloyd George Management director Adaline Ko is retir- ing after 29 years in financial services. Ko joined Lloyd George in 1994 and has managed the £7m Eastern opportunities fund since its launch in January 2000. Chris Tang will take over the fund but Ko will co-manage with Tang until the end of February. The fund […]

1

Santander small business lending boosts profits

Santander saw an 11 per cent increase in UK profits in 2010, up from £1.5bn in 2009 to £1.7bn. The company’s gross mortgage market lending share fell by 1 per cent to 17.7 per cent. Gross mortgage lending also fell from £26.4bn to £24.2bn. Lending to small and med- ium-sized businesses rose by 26 per […]

5

Should the Government scrap mortgage stamp duty?

New director of the Institute for Fiscal Studies Paul Johnson says stamp duty on housing “gums up” the market and should be scrapped. Speaking to Money Marketing, Johnson says the tax on house buys discourages people from moving. He says: “I do not think there should be stamp duty on housing transactions. It creates significant […]

IHT: What were you doing in 2009?

One of the best sources of new business is your existing clients and, if they are estate planning clients, regular reviews are needed because people’s inheritance tax (IHT) problems tend to only get worse. Now, not a lot of things remain at the same rate as in 2009. If we turn the clock back, it […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment