Angry advisers demand FSCS justify 'opaque' decision making

Laura Miller
clock

The FSCS is facing angry calls from both IFAs and investors to make its decision-making process more transparent, after two controversial judgments involving Lifemark-backed Keydata bonds and Lehman Brothers-backed NDF products.

At present, the FSCS must determine which activities have caused investor losses and then assign compensation costs. It has no express duty to consult on how it reaches these decisions or the levy amount. In the Keydata case, law firm Regulatory Legal, acting for IFAs, called the FSCS decision to class the failed investment firm as an ‘intermediary’ for levy purposes “absurd”, during a judicial review. At the hearing at Birmingham High Court last week, it also accused the FSCS of failing to listen adequately to industry calls to re-examine its stance during a consultation. Now a se...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Low-cost platforms spur one in three UK adults to invest

Low-cost platforms spur one in three UK adults to invest

Trading 212 the main beneficiary

Michael Nelson
clock 12 March 2026 • 2 min read
Understanding the investment appeal of the energy addition

Understanding the investment appeal of the energy addition

Positive change takes time

Tim Humphreys
clock 11 March 2026 • 4 min read
Chaos is not a ladder: Navigating human behaviour at times of market stress

Chaos is not a ladder: Navigating human behaviour at times of market stress

'It is important to maintain perspective'

Sacha Chorley
clock 09 March 2026 • 4 min read