IMA attacks FSCS funding proposals

Natalie Kenway
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The IMA has attacked the FSA's proposed changes for the funding of the Financial Services Compensation Scheme saying fund management groups would be unfairly contributing for claims for mis-sold insurance or structured products.

Chief executive of the IMA, Richard Saunders, said the proposals were "shocking and astonishing" and had the potential to discourage global asset managers from locating in the UK. He said: "These proposals expose different types of firms to completely different liabilities in a totally inequitable way. "Banks and insurers, which will in future be regulated by the Prudential Regulatory Authority, are looked after in their own scheme with no exposure to cross-subsidy. But fund manufacturers, to be regulated by the Financial Conduct Authority, will not only be responsible for compensatio...

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