FSCS Keydata interim levy cut to £58m

The proposed interim levy on the investment intermediary sub-class in 2009/10 following the failures of Keydata and two stockbrokers has been cut from £70m to £58m, although the structured product-related charge has increased by £2m, the FSCS confirms today.

Revised projections mean the FSCS will not need as much money as it initially anticipated before it collects the levy this year, resulting in the drop.

Previous estimates put the total interim levy at £90m, made up of £70m relating to the failures of Keydata and two stockbrokers and £20m from structured products.

However, following a revision of its Budget, the levy relating to Keydata, Pacific Continental Securities and Square Mile Securities has dropped to £50m while the proposed levy for claims against structured products has increased to £22m.

The total proposed interim levy, therefore, has reduced by £10m to £80m.

An annual levy of £148m has been agreed by the FSCS for 2010/11, an increase of £19.5m from initial estimates.

More to follow...