FSA reveals how it will police adviser charging
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Advisers will have to provide the FSA with data about adviser charging models as part of their regulatory return and submit complaint data at an individual adviser level under proposals by the FSA.
The FSA has published a consultation paper on data collection through the retail mediation activities return and the level of complaint data firms will have to provide about individual advisers.
The regulator plans to extend the level of information collected through the RMAR for all firms that provide retail investment products.
Retail investment advisers will have to breakdown their advising charging structure to notify the FSA whether the firm is providing independent or restricted advice, initial or ongoing advice, and whether payment is collected directly from clients, via product providers or via platforms.
Consultancy charges relating to group personal pension schemes, group self-invested personal pensions and group stakeholder pension schemes will also be subject to the new proposals.
But mortgage brokers and protection advisers, or non-investment advisers, will not come under the proposals.
The FSA says: “The proposed RMAR data will help us to supervise the RDR rules on a business as usual basis from December 31, 2012, at the firm and sector level, and are consistent with the emerging risk model for the Financial Conduct Authority.
The FSA is also planning to link complaint data to investment advisers’ individual reference number, and adding complaints data to existing reporting on individuals.
Firms will have to provide information when a complaint against an adviser involves a claim of more than £5,000, regardless of whether the complaint is upheld or settled.
Firms will also have to report to the FSA when an adviser is the subject of three complaints in any 12 month period.
The consultation period ends on July 8, and a policy statement is expected in the second half of this year. If the proposals are agreed they will come into effect on December 31, 2012.
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Readers' comments (22)
Incompetent Regulators Awards Team | 10 May 2011 10:57 am
More control freakery from the WORLD CLASS REGULATOR. The net is closing and the end is nigh for IFAs.
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Simon Chalk | 10 May 2011 10:58 am
In omitting mortgage advisers from the proposals, the FSA utterly fails to understand the need for a level playing field. Are they saying that there is no risk of consumer detriment in the lending community? If so, they are quite wrong as I'm absolutely certain that many equity release products are sold on high commissions by some of the big firms.
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Simon Mansell | 10 May 2011 11:14 am
So the RMAR with be extended from a load of bull to a total and comprehensive load of bull.
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MMMmmm...... | 10 May 2011 11:24 am
And so it goes on and on and on ..........
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Steven Farrall (Adviser Alliance) | 10 May 2011 11:26 am
It'll fail. In one way or another it will fail. Failure is what the FSA does. It's very genes are founded in fabianistic/communist failure. It is the child of the LSE - the noted lefty insitution whose alumni, Brown Balls etc etc - were the very architects of the legislation that spawned it. How can doing more box ticking (which may I remind you precipitate a dozen banks into failure) of the type that has previously failed ever be successful? It's the ultimate stupidity, to keep doing things that don't work, just in case they might this time.
Apart from that this is a massive assault on individual freedom. Not just our freedom, but more importantly our clients to do business as they wish with whom they wish.
But it's all very well for us to talk to each other on here. The real issue is how we get this message out to everyone else?
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Swanny | 10 May 2011 11:39 am
Dear FSA
To make life easier why don't you just tell me how much too charge.
Thereby cutting out all the crap.
By the way I thought you were being closed down
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Peter De Souza | 10 May 2011 11:40 am
I actually believe this to be a good idea, certainly better than FSA visits etc
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M J Winfield | 10 May 2011 11:45 am
The mortgage industry is excluded.
Is this because mortgages come from banks and banks trade honestly or is it banks are the next dropping off place in certain peoples carrers.
Banks and regulators have been seen to be great friends in the past.
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Phil Castle | 10 May 2011 11:58 am
Bearing in mind the fact so many banks are state owned now. How about they test the ability of the banks to provide the info they want before trying to impose them on us. Then compare the stats they are given against what really happened rather than what the bank staff wrote down to get their line manager off their back.
I used to get in to terrible trouble when I worked for a bank when I actually put down ACCURATE figures for clients seen compared to business written as I didn't see enough clients according to their statistics, but all it was, was that everyone else LIED to keep their line manager off their back and I wouldn't.
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DH | 10 May 2011 12:07 pm
More lunacy !!! more reporting, more rules, more chances to put you neck in the hangmans noose,
Hello darkness my old friend I relish these little chats
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