MM Leader: Cummings will be a tough act to follow for Aifa

24 June 2010 12:02 pm

After five years at the helm of the Association of IFAs, director general Chris Cummings has quit the trade body for pastures new.

Since replacing David Severn in 2005, debate about the future of financial services regulation has moved on immeasurably, both close to home with the twists and turns of the retail distribution review and, more importantly, through reaction to the regulatory failings exposed during the economic crisis.

In our opinion, Cummings has done a very good job in difficult circumstances, winning a number of important victories for his members and offering real leadership in the way he has represented the IFA profession.

His critics often attacked him for not being more aggressive in his dealings with the FSA but it is hard to see how such a stance would have achieved anything more than he managed with his restrained diplomacy.

Cummings’ hard work helped change some of the flawed aspects of the original RDR paper which would have led to huge numbers of advisers leaving the industry. Since then Aifa has been influential in a number of sensible changes - such as allowing alternative assessments.

The weight of political and industry opinion has led to much of the RDR becoming inevitable, leaving Aifa to fight over important details, rather than launching a futile attempt to stop the RDR happening.

It is sometimes difficult to quantify the positive effect lobbying can have on policy and Chris would point to a number of important RDR victories he won behind closed doors. Aifa’s Manifesto for Advice highlighted the positive changes the trade body was looking to promote and won plaudits from Government ministers.

Cummings’ departure allows the trade body to refocus efforts. Of pressing concern is helping to ensure members are still able to advise after 2012. With future regulatory changes more likely to emanate from Europe, Aifa must build on its work looking to influence policy at a European level.

The next director general of Aifa must continue the difficult task of sticking up for IFAs in what may be a hostile political and regulatory environment. They must continue to battle those in the financial services industry who seek to lumber consumers with inferior products and service and they must continue to champion the huge benefits that independent financial advice offers.

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