View more on these topics

Providers snub FSA offer of levy summit

Product providers have rebuffed two FSA offers to hold negotiations on the Financial Services Compensation Scheme levy crisis hitting IFA firms.

FSA managing director David Kenmir sent a goodwill gesture to product providers, saying the regulator was willing to meet and discuss the levy dilemma faced by IFAs.

But the FSA says there has been no response from any firms since the offer was made at the beginning of the month.

Aifa has offered to act as a go-between and has started negotiations but is not confident that providers&#39 contributions subsidising IFAs will be extended to this year.

An increase in compensation claims and the number of firms being wound up in the aftermath of endowment reviews has coincided with the ending of the Pass fees&#39 subsidy by product providers. This year, many IFA firms have been hit with levy increases of as much as 2,500 per cent.

FSA spokesman Ruth Excell says: “David Kenmir sent an offer to the product providers that he would be happy to meet and he has reiterated it. The purpose of the meeting would be to discuss a resolution to the current situation where product providers used to make a contribution to the levy.”

The FSCS has no involvement in the offer from Kenmir. Money Marketing contacted several product providers for a response but none would comment on the matter.

A total of 505 IFA firms which have still to pay their FSA fees including the Compensation Scheme levy have received a final payment demand by recorded delivery from the regulator this week. The figure is down from 630 firms which had still to pay last week. The FSA says firms will face penalties if payment is not received within ten days of receipt of this demand. Firms will incur an administration fee of £250 plus 5 per cent above the Bank of England base rate on the sum outstanding.


Show means business

Next Tuesday will see the North&#39s biggest one-day show for financial intermediaries return to Manchester&#39s G-Mex Centre. With 40 CPD-accredited conference sessions and over 100 exhibitors, Money Marketing Live will once again give financial intermediaries the opportunity to discuss some of the key challenges they face with senior industry figures. There are nine streams of […]

Platinum Capital Management – Platinum Premier Fund

Type: Hedge fund Aim: Growth by investing long and short in UK, US and European government securities Minimum investment: $100,000, £60,000, euros 100,000 Investment split: 40% US, 30% UK, 30% Europe Place of registration: Cayman Islands Charges: Annual 1.5%, performance fee 10% Commission: Subject to negotiation Tel: 020 7887 6110

Customs briefing sets out position on network VAT

Support services providers could face Vat bills on member services but traditional networks will escape the charges, according to a leading tax expert. After industry pressure, HM Customs and Excise has issued a business briefing to explain how Vat should be applied to IFA networks in the future. The briefing, which was quietly issued to […]

ScotLife cuts managed fund equity exposure

Scottish Life is reducing the equity component of its managed fund range and introducing asset allocation which it says matches policyholders&#39 changing risk appetite. It is cutting average equity exposure in its medium balanced managed fund from 82.9 per cent to 55 per cent. The defensive managed option rises from 21.2 per cent to 27.5 […]

Passport - thumbnail

Thinking of expanding overseas?

Whether you’re a small company or an established larger employer, expanding overseas into emerging markets can be an extremely attractive prospect for growing your business. However, with this comes a duty-of-care requirement to any staff based overseas.


News and expert analysis straight to your inbox

Sign up


    Leave a comment