The UK Financial Services Authority's redesign of its £4bn consumer protection scheme, which pays out to retail customers who are the victims of mis-selling, is "fundamentally flawed" and unfairly singles out fund managers, according to the Investment Management Association.

The FSA's proposal "lacks vision, logic and fairness" because it "lets banks and insurers off the hook" for mis-selling in their own sector, while fund managers pick up the tab, the IMA said.