Aifa manifesto says regulator has lost sight of its aims
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Aifa has published a retail distribution review manifesto accusing the regulator of los- ing sight of its aim of building consumer trust and widening access to advice.
It says that the FSA needs to reaffirm its original RDR objectives, so it can be held accoun-table for delivering them.
Aifa says the RDR must lead to more consumers having their financial needs and wants addressed and the FSA should reward firms that invest in their business with regulatory dividends.
It says no good firm should be put out of business by “arbitrary dates imposed by the regulator” and work-based assessment and vocational training must be recognised as an equivalent to qualifications.
Aifa will present its full RDR response this week. Director general Chris Cummings says he supports the drive towards higher standards of professionalism, but is concerned the current proposals will not meet the original objectives of the reform.
He says: “There is a danger that the implementation of some of the proposals by the current deadlines will lead to fewer consumers being able to access independent, financial advice. Those who do will have to pay considerably more for it.
“Since the start of the banking crisis, many more people have sought out independent financial advice. IFAs are the most trusted part of retail financial services and that is why the FSA should be working with us to bring improvement, not risking the future of firms by rushing to impose deadlines that were set before the recession.”
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