FSCS announces 2010/11 levy and 2009/10 interim levy

The annual levy for 2010/11 has been set at £148m, and the FSCS is raising an interim levy of £80m (in 2009/10) on the Investment Intermediation sub-class.Of these costs, £58m arises from claims against Pacific Continental Securities (UK) Limited, Square Mile Securities Limited, and Keydata Investment Services Limited. In addition, £22m of the 2009/10 interim levy is to fund the cost of claims relating to structured products. Following publication of our Plan and Budget in February, we know that the allocation of costs arising from Keydata Investment Services Limited has attracted particular interest. Before we allocate costs we always carefully consider which is the correct funding class or sub-class. In our view, costs for Keydata Investment Services Limited are to be attributed to the Investment Intermediation sub-class.

We encourage all interested parties to read the detailed note on the FSCS’s decision You may also find the sample brochure for SIB 1 useful.

By Thomas Chen
29 March 2010