FSCS pledges levy 'refund 'on N&P Keydata payout

Laura Miller
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The FSCS has pledged to use the money it receives from the £57m Keydata compensation deal it struck with N&P to partly refund advisers' levies.

A spokesperson says it has reached an agreement "in principle" with N&P for the building society to return to the scheme the amounts it has already paid out to investors. However the FSCS says it is "too early to say" how much may be returned to advisers, or when. "If the money comes to us it will be used to reduce the levy", says Suzette Brown of the FSCS. Levy payers have only had money returned in one case previously. In 2006 the FSCS returned £42m to insurance firms after recovering more redress than expected following an initial levy. Advisers paid out £93m in February in a...

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