Fund managers first in queue for FSCS Keydata rebate

The FSCS will prioritise the fund management sector ahead of IFAs when it rebates the interim levy with any recoveries linked to Keydata.

The compensation scheme today announced its 2011/12 levy will be £217m, down £23m from the projections in its February Plan and Budget. Investment intermediaries will pay £34m, less than its earlier estimate of £40m. However investment IFAs who had hoped for a speedy return of some of the £93m interim levy they paid in January will be disappointed. The FSCS says any financial recoveries it makes will first be used to rebate the fund management sector, which paid out £233m of the £326m bill for failures largely linked to the collapse of investment firm Keydata. Fund managers were...