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

How quality investing behaves through the cycle

How quality investing behaves through the cycle

Resilience when it matters more

Joseph Stephens and Laura Neill
clock 14 September 2026 • 4 min read
Why portfolios need to evolve, not revolve when it comes to client outcomes

Why portfolios need to evolve, not revolve when it comes to client outcomes

'As market structures evolve, so must portfolio construction'

Ed Senior
clock 11 September 2026 • 4 min read
What does 'quality' investing actually mean?

What does 'quality' investing actually mean?

Why persistence is the real test

Joseph Stephens and Laura Neill
clock 11 September 2026 • 4 min read