Passporting route could be costly
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The Federation of European Independent Financial Advisers says many advisers considering passporting into the UK to avoid RDR regulations may find the process too costly or intensive to be worthwhile.
Feifa chief executive officer Paul Stanfield says regulatory and legislative concerns need to be assessed, such as the possible need for an office on the Continent or increased knowledge of labour laws and tax systems.
He says: “It is true that an IFA passporting into the UK would not need to pay any FSCS levy but if an office is required in another EU state, then this will obviously entail potential increases in variable and fixed costs and possibly greater liabilities in areas such as staff benefits and entitlements.”
Stanfield says that passporting into the UK can be viable if it is seen as part of a long-term and sustainable business model but he adds: “Passporting into the UK is not an easy option and needs very careful and significant evaluation before being pursued.”
Informed Choice managing director Martin Bamford says: “Passporting is a pretty desperate move to avoid regulation designed to improve service.”
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Readers' comments (2)
Julian Stevens | 21 Sep 2010 9:29 am
In response to Marin Bamford's comment, I think many advisers contemplating the passporting route might well declare it to be a move to get away from the biased tyranny of the FSA whose agenda appears to be based on an obsession with fixing what is, by and large, manifestly not broken whilst at the same time allowing the banks to ride a coach and horses through just about everything that good regulation is supposed to be all about.
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Anonymous | 21 Sep 2010 10:30 am
Totally agree with Julian Stevens.
Why is passporting seen as avoiding improving standards?
Passporting could not possibly be as difficult as putting up with an increasingly kafkaesque like regulator.
The closer we get to the nirvana that is supposedly the rdr, the more we seem to get of the holier than thou attitudes.
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