Stephen Gay must be given a chance to succeed
Share
Since news that Stephen Gay was to take over as Aifa director general broke on Friday the majority of responses on our website have been negative.
Questions have been raised about Gay’s provider background and whether he will be able to “cross the fence” to represent the IFA community. Can someone who has argued the provider cause so far on the retail distribution review now lead the IFA sector?
Of course it would have been great if the new director general of the Association of Independent Financial Advisers had plenty of IFA experience alongside the strong negotiating skills, leadership qualities and gravitas needed to make a success of the job.
Without being privy to the short-list of candidates for the role of Aifa director general, or indeed a list of all those who applied, it is impossible to speculate whether there was a strong experienced IFA candidate who also had the skills set to represent the profession in Westminster, Canary Wharf and Europe.
However, Stephen Gay’s provider background certainly should not automatically disqualify him from the role. I have many contacts who have worked for product providers most of their careers but are passionate champions of independent financial advice.
I’ve only met Stephen a handful of times and it is hard to speculate too much on the direction he will be taking Aifa until we have heard him speak on a number of important issues. A positive point in his CV is the fact he managed to persuade Aviva to dig deep to support large numbers of IFAs on the road to gaining their RDR qualifications through its academy.
What we did need was someone with a deep knowledge of the distribution landscape and the current regulatory plans for the sector to hit the ground running at a crucial time of the profession.Bringing in someone from one of the big IFA networks or support service firms would undoubtedly have brought its own baggage.
There are a number of pressing issues which Gay needs to get to grips with, including who he will be representing come 2013. The trade body’s recent Advice Horizons paper offered members a comprehensive summary of the options available to them after 2012. As part of this it suggested members seriously consider the restricted advice channel as an option for some, or all, of their business.
After depolarisation Aifa refused to admit multi-ties into its ranks. The multi-tie route ended up as a bit of a damp squib but the restricted advice route may well be much more popular and Aifa will have to make an important decision as to whether to admit and represent restricted advisers.
If agreed this would entail much more than a simple cosmetic name change. Will it be possible to hold together a trade body representing the interests of independent and restricted advisers? Many members would question whether a move away from a focus on independence and whole of market will dilute the power of the trade body and whether it is still able to represent their interests.
Gay has been a passionate supporter of increased qualifications in the industry but he will be leading a trade body where a significant percentage of its members are angry with the way they are being forced to get new qualifications to continue to trade post-RDR. Chris Cummings was always careful to champion increased professionalism whilst sympathising and arguing the case for older advisers unhappy with the new RDR requirements. How will Gay approach member concerns on this issue?
Gay has many challenges ahead and certain decisions are unlikely to please everyone. But let’s hear what he has to say before flinging the arrows.
Paul McMillan is editor of Money Marketing
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
View results 10 per page | 20 per page
Readers' comments (16)
Pissed Off IFA | 6 Sep 2010 4:12 pm
It is unlike me to be positive about any parasite but let's give him 12 months to see if he can really help the IFA. At present, we are being crushed out of existence particulary on the mortgage side. Let's hope the establishment does get him like they did, Chris Cumming.
Unsuitable or offensive? Report this comment
Anonymous | 6 Sep 2010 4:29 pm
It is all very well saying give him a chance what should have happened is that the members of AIFA who pay the bills should have been asked whether they want a life insurance pro RDR man to represnt them. As we have seen the answer would have been no. I suspect a lot of AIFA members will now think twice about their membership. I certainly will
Unsuitable or offensive? Report this comment
Tom Baigrie | 6 Sep 2010 4:31 pm
Spot on Paul. Steven is certainly one of the good guys and must be given a full chance by his membership. It may be the effects of 23 years of mis-regulation that makes IFA's so often negative in our first response, but if we don't get positive and sensibly united we will be carved up by those who are. Chris Cummings did a wonderful job of reigning in the FSA's many stupidities, but our need now is for a clear voice shaping the way the FSA is rebuilt as the CPMA. If Steve can get that right then our future will be a lot brighter. And to have a chance he needs our backing. Let's give him that chance.
Unsuitable or offensive? Report this comment
Anonymous | 6 Sep 2010 4:34 pm
Chris Cummings was always careful to champion increased professionalism whilst sympathising and arguing the case for older advisers unhappy with the new RDR requirements. How will Gay approach member concerns on this issue?
No
Unsuitable or offensive? Report this comment
Who gave the IFA a chance? | 6 Sep 2010 5:00 pm
Ok so you say Stephen Gay’s provider background certainly should not automatically disqualify him from the role.
I say why does an IFA background disqualify an IFA from even applying for this job?
Of course he should be given a chance and so should 10,000 plus IFA be given the same chance to continue with their long standing businesses. Cummings was given chance and we waited and waited and all fell asleep only to wake up to a bad dream RDR on it way.
So Gay has been a passionate supporter of increased qualifications rah rah bully bully etc etc. What this means is forced requalifications but not applied to the idiots at Canary Wharf who let the banks bring UK plc to its knees. Perhaps Gay can get really passionate about under qualified regulators?
Foget AIFA subs and pay your money instead to the FSCS Judicial Review Contribution at Regulatory Legal who are actually fighting regulatory abuse not pussy footing around playing "yesman" to the Stasi.
Contact Regulatory Legal and divert your AIFA subs to a fight that is in motion a fight that AIFA backed away from!
Unsuitable or offensive? Report this comment
Flying Squad | 6 Sep 2010 5:01 pm
Having sat next to and talked with Stephen at an Aviva RDR function a week before his appointment was announced, on reflection I am unsure if he is able do an effective job for the IFA community. My main concern was his apparent belief (unless I misunderstood him) that every IFA had a moral duty to each and every citizen regardless of the remuneration involved. Such an approach is idealistic and allowed the Stakeholder concept to make it's totally minimal impact with an eventual lack of support from all parties (client, provide, adviser etc). I hope that he (and the IFA community) does not get walked over.
Unsuitable or offensive? Report this comment
Anonymous | 6 Sep 2010 5:05 pm
Join Adviser Alliance & vote for UKIP
They are the only people who care what happens ro IFAs
Unsuitable or offensive? Report this comment
Anonymous | 6 Sep 2010 5:11 pm
Re flying squads post
If you did not misunderstand him, he sounds a bit like the fsa- wants us to wotk our butts off for ZILCH
Maybe he will ask us to sign an IFAcratic oath.
Unsuitable or offensive? Report this comment
IFAs are all just prisoners here... | 7 Sep 2010 7:04 am
It's all well and good saying give him some time - first let him give us a list of things he intends to try to change...
What's his position on say the retrospective removal of our rights to the 15 year longstop, especially for compliants pre N2 that fall under the PIAOB ?
What will he do for IFAs who have now retired.. but seem to have all the problems still without the representation... no PI cover and complainants who can go to the FOS to "try it on" costing them nowt and maybe winning themselves an iPad along the way ?
Being an IFA is now a lifelong commitment, not a job - simply because we don't have the 15 year longstop - a private limited company set up under statute law then chooses to ignore other statute laws and no-one can do anything ???
We need an iron fist in a velvet glove.. is this chap that.. ?
Let's see his "to do" list and the AIFA mandate now please.
Unsuitable or offensive? Report this comment
Cumming was drinking in the last chance saloon and | 7 Sep 2010 9:16 am
Sorry you don't get a second chance to make a first impression or in AIFA's case a third or fourth chance. I'm affriad it was Cumming who was drinking in the last chance saloon and time has been called. AIFA has voted for more of the same and that is what Gay will give you - more of the same. Go put your money with Adviser Alliance and the regulator abuse of IFA rights via Keydata. No more lions led by donkeys!
Unsuitable or offensive? Report this comment