An irate adviser has said the latest FSCS interim levy is tantamount to mafia-style "extortion" and thinks clients - not advisers - should pay for firms' failures through an investment warranty.
Advisers have been receiving invoices for their share of the £60m interim levy in the past few weeks. It will pay for received and anticipated claims related to the collapses of MF Global, Keydata, CF Arch Cru and Wills & Co. Applewood Wealth Management managing director Karl Hartey, who has received a bill of almost £6,000, described it as "ridiculous" advisers have to pay for the failure of products they have never recommended. He has proposed a system where clients are given the option to buy a warranty on investment products at the point of sale to insure against product provid...
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