RDR: Aifa questions FSA's drop in adviser numbers
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Aifa has called for “immediate clarification” from the FSA over its claim that there are 48,000 approved investment advisers, which Aifa says is down considerably from its previous figure of 85,000.
The RDR consultation paper on professionalism, published today, states that the FSA is monitoring “around 48,000 individual investment advisers that are currently approved to offer advice in the retail market”.
Aifa policy director Andrew Strange says: “The reduction in number from the original 85,000 advisers to just 48,000 advisers is cause for concern and deserves immediate clarification by FSA.
“Aifa continues to analyse the data, but a level playing field for all those offering investment advice is crucial to the success of the RDR. It also could call into question aspects of previous CBAs.”
Strange applauds the FSA’s proposal to take responsibility for professional standards, rather than establishing an independent professional standards board.
He says: “Advisers were rightly concerned by the possibility of double jeopardy with the creation of a new regulator. Professionalism is vitally important, but a PSB, independent or otherwise, was the not the solution.
“Aifa has been an advocate of practicing certificates for advisers. The proposed statements of professional standing are a version of these. However, it remains to be seen who could act in the role of accrediting body – FSA states that FSA authorised firms are unlikely to be acceptable, but it is less clear where this leaves unauthorised service providers for instance.”
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Readers' comments (1)
Simon Mansell | 29 Jun 2010 8:29 pm
AVIVA and several others predicted a loss of 10,000 advisers as a result of the FSA RDR decimation of the IFA sector! The reduction in number from the original 85,000 advisers if true is an example of the regulatory destruction of this industry! Maybe Chris Cummings got out because there we no members fees left to be had!
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