Firms must report advisers failing professionalism standards from July
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Firms will be obliged to notify the FSA if any adviser falls below the required standard of competence or ethical behaviour from July.
In its policy statement on professionalism, published today, the FSA says statements of professional standing will be required for retail investment advisers who want to give independent or restricted advice after January 2013.
But the regulator adds firms should also notify it about any issues with individual adviser competence, including ethical behaviour, where this breaches existing requirements.
The FSA says: “When the RDR comes into force in January 2013, the FSA will start collecting information about individual advisers, such as the qualifications they hold and which accredited body they use.
“However, in preparation for 2013, the first of the professionalism rules will come into force in July 2011, and from this point firms will be obliged to notify the FSA if any adviser falls below the required standard of competence or ethical behaviour.”
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Readers' comments (14)
Incompetent Regulators Awards Team | 20 Jan 2011 11:00 am
If we do all the work for the regulator, why do we need one at all? As if businesses don't have any standards apart from the FSA. ha! ha!
The FSA should get their own house in order first. Then they can make demand. Pigs might fly!
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Delegator | 20 Jan 2011 11:09 am
To make this a little less painless what about the facility to edit certain sections of standing data about advisers and firms held on the FSA register - i.e. qualifications held?
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Paul | 20 Jan 2011 11:10 am
"falls below the required standard of competence "
Er, am i being a bit fick??....does "the requried standard of competence", in this RDR context statement, therefore mean any adviser who isnt already level 4 qualified then? And if it doesnt mean that, then what exactly DOES it mean?..in simple terms that is!!
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Anonymous | 20 Jan 2011 11:20 am
Under the Freedom of Information Act -
Cant the FSA be forced to publish all their members of staff qualifications?
I suspect the qualifications held will be very sparse.
Bullys and nothing more!
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Michael Fallas | 20 Jan 2011 11:22 am
Does this apply to the FSA as well?
answers on a post card !!
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Captain IFA | 20 Jan 2011 11:33 am
I can think of a few institutions who have fallen below the standards of competence we expect. Top among them is the FSA followed by certain banks. If you think i'm being a bit hard on them, ask the citizens of the UK what they think of our incompetent regulator and Banko Bandito's now we are all wallowing in an ocean of national debt.
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Rod | 20 Jan 2011 11:43 am
The KGB would be very proud of the FSA,
For goodness sake can't they just go and drown themselves and leave us alone to get on and look after clients!
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DH | 20 Jan 2011 11:51 am
FACT -: the FSA have now gone beyond, over regulation, and now become an embarrassment and a joke
I think it intends to leave as much S**t as poss for the next lot to clear up
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Tim Harvey | 20 Jan 2011 12:03 pm
Will this help?
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Anonymous | 20 Jan 2011 12:40 pm
Two Extracts from the PS:
Firms must also notify us in the event that they become aware of information which
might suggest an approved person is no longer fit and proper using Form D.38
This information will underpin an adviser database that, with additional insights such as alerts from firms, accredited bodies, whistle blowing, and other data, will enable us to identify the highest risk advisers.
Dear FSA - start here:
Between July 2006 and November 2008, Barclays sold Aviva’s global balanced income fund and the global cautious income fund to 12,331 people with investments totalling £692m.
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