The Financial Conduct Authority has scrapped plans to exclude Long-Term Asset funds (LTAFs) from receiving cover from the Financial Services Compensation Scheme (FSCS).
In its feedback statement published today (30 October), the regulator said that following input from several industry players, it will not seek to exclude LTAFs from FSCS cover, which provides compensation of up to £85,000 in the event that a regulated firm goes out of business. Despite arguments in favour of the exclusion - such as the high investment risk of LTAFs; the existence of risk appetite assessments, financial advisers' need to undergo suitability exercises and bringing down the high FSCS levies - the move will not take place. The decision follows a consultation that began t...
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