The FSA has defended the way it handled the Keydata affair.
Yesterday, it said it had been 'pro-active and decisive' in its tackling of the failed firm.
At the FSA's annual public meeting, financial adviser Harry Katz of Norwest Consultants asked about the collapse of Keydata and the delays facing customers who are still awaiting compensation.
Keydata was put into adminstration in June 2009 on the application of the FSA after finding Keydata had a £5m tax bill it could not pay.
Jon Pain, the FSA's managing director for conduct risk, said the whole affair had been very serious for consumers but he believed the FSA had acted correctly.
Pain said that compensation was a matter for the Financial Services Compensation Scheme which had reviewed 16,500 Keydata claims so far.
He added that the Keydata situation would take a very long time to resolve.
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