IMA: FSCS levy judicial review ‘less likely ‘

The IMA has distanced itself from earlier proposals to launch a judicial review into the funding of the FSCS, as it looks at "other options" to tackle the levy on behalf of its members.

It has been mulling the case for a legal challenge to the way the levy is allocated since January, after its fund manager members were forced to contribute to a £233m compensation bill primary linked to the failure of Keydata. A spokesperson for the body says a review is now "less likely" to be the best course of action for members. However, an alternative route still on the table is to invest in Lifemark, the Luxembourg company which backed Keydata bonds. About £242m of the total £326m FSCS interim levy relates to Keydata compensation costs including a large chunk linked to claims...