Court bid to reveal FSCS advice on Keydata

Regulatory Legal has issued a court application for the Financial Services Compensation Scheme (FSCS) to disclose the advice it used in deciding to categorise Keydata as an investment intermediary.

The High Court application calls for the FSCS to make public advice it received from the Financial Services Authority and PricewaterhouseCoopers. It comes ahead of a judicial review of the FSCS’s controversial decision to categorise Keydata as an intermediary rather than as a provider, which will take place in early November.

The FSCS has twice previously refused to provide details of the advice it received.

Advisers were hit with an £80m levy, the majority of which related to claims from Keydata investors. (article continues below)

The adviser sub-class faces another big levy due to the FSCS allowing Lifemark investors to claim for compensation. It is still unclear how much Lifemark investors may have lost. An update on compensation calculations will be given by the FSCS this month.