Aifa says grandfathering would cause confusion
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Aifa has argued against the FSA allowing grandfathering as part of the RDR, saying it would leave clients confused about the standards of advice.
Director Robert Sinclair says Aifa would liked to have seen the regulator to assess adviser competence purely through continuing professional development rather than exams but these are not the rules the industry has been given.
He said: “Do I have sympathy for those people in the twilight of their careers who are being asked to go through this qualification process, of course, I do, but to say grandfathering should be an option for people opens up a two-tier structure which would confuse consumers even more.”
Sinclair said it is inevitably going to painful for advisers and firms who do not pass the required exams but said the RDR deadline does not necessarily mean advisers who do not reach QCF level four in time have to leave the industry.
He said: “Advisers can partner with people who are qualified or they can change the way they do their business. It is not a case of having to stop seeing customers. You have to find a way of making sure the advice is being given by someone who is regulated at the right level. Nobody is saying an individual has to exit this business after 2012. What the FSA is saying is that person cannot be responsible for the advice.”
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Readers' comments (10)
Dinosaurs funding their own extinction | 4 Nov 2010 2:44 pm
This is as good as AIFA calling for mass resignation!
So it’s official now? All those AIFA members at risk because of level 4 now know that AIFA are in favour of their termination post RDR. How does it feel to have this kind of representation ...and fund it?
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Ron | 4 Nov 2010 3:39 pm
Like paying for a dose of the clap.
This appears to have gone under the radar of many advisers - so far.
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Phil Castle | 4 Nov 2010 4:27 pm
I sent in my resignation today to AIFA. I doubt I will be missed by anyone except my clients, but they don't seem to come in the the FS Oligarchy's view of the world.
I'm only 45, so I'm not arguing grandfathering for me, but when your own trade body cannot see that there IS an argument for some kind of grandfathering for advisers nearer retirement so that their clients do NOT have to change adviser as they themselves move in to retirement or as this article suggests, someone elese has to take on responsibility for teh advice, but teh person can continue as a relationship manager instead, they are missing the point of Independance. But then AIFA looks like it will have to change it's name to R&AIFA, ie.e.Restricted and Association of Independant Financial Advisers as many staying will probably be forced by the rules to give restricted advice, despite being Independant of mind, body and ownership.
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Derek Gair | 5 Nov 2010 9:38 am
Appalling - can everybody see the real AIFA now ? The one I've been talking about for the last 5-10 yrs ?
Its about fighting for the majority groundswell of opinion - that will never ever happen at AIFA - it is and has always been run by vested interests - those vested interests have no interest in the majority view. Even the TSC questioned AIFA's role in representation of the IFA cause the other week !!
IFAs desperately need proper representation. Representation they will never get with AIFA.
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Offshore Adviser 2 | 5 Nov 2010 10:20 am
i dont see it is any problem whatsoever. I will just go to a bank and get employed as a bank advisor Level 4 exempt I understand. OK, so I will not be independant, ok, I will know there are other solutions available, but I will be making corporate not personal decisions and hey, I may become part of the million pound bonus culture.
Other option is to go offshore, a nice trip to spain once a week, perhaps Vietnam the following week, use the 30 years experience in another market where the FSA, AIFA have no say. RDR in these markets means Retail Distribution Remendies!!!
the savings in office and professional body costs will easily cover the cost of the flights and accomdation and there are still a few good firms left to get agencies for offshore. The providers provide the products, pay the commissions, great..................and off I went.
Phil Castle, I responded to you re the QROPs post you made 1 November. WOuld love to speak to you sometime.
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Mr Smug | 5 Nov 2010 10:51 am
I wish I had joined AIFA now so that I could resign.
Unfortunately I recognised this bunch of muppets for what they are. a bunch of muppets.
MUPPETS
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Anonymous | 5 Nov 2010 11:58 am
Cause confusion?
Loke the RDR you mean?
AIFA should just close its doors now.
What a waste of space,
For an organisation that is supposed to represent its members it is showing an appalling lack of understanding.
Cancel your DD to AIFA now and support an organisation with your best interests at heart.
Let them see how it feels to have no support.
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Julian Stevens | 5 Nov 2010 3:21 pm
AIFA ~ you're useless. I'm resigning my membership too ~ my fees will be better spent elsewhere.
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Anonymous | 5 Nov 2010 4:56 pm
Aifa, you're FIRED
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Frank Dennis | 30 Nov 2010 11:12 am
Why will Grandfathering cause confusion ?? My clients have the choice now to go to a Chartered Insurance Practitioner - nothing is preventing them except their preference to deal with me. Robert - I thought you represented your Members - You appear to be acting in the same way as FSA - formulating opinion then foisting it on the majority - whether they like it or not. What happened to consultation ?
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