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&#39Who will carry the can if FSA advice is wrong?&#39

The FSA is planning to launch an interactive fact-find, leading IFAs to ask who will be left to carry the can if the regulator&#39s advice turns out to be wrong.

In its report published this week, the FSA says it plans to develop the fact-find to help consumers understand their finances better.

But IFAs are demanding to know who will take responsibility if consumers are misadvised through the scheme and are calling for the FSA to stay out of the advice business.

The concept of an interactive fact-find was first reported in Money Marketing last November when an FSA spokeswoman said it was on a long term “wish list”.

Aifa director general Paul Smee says: “I still do not believe that devices of this nature will take away the need for face-to-face advice. If the FSA persists with this idea, it must be very clear about who is responsible if anything were to go wrong.”

Pensions & Investment Management principal Phil Moore says: “It is simply wrong. I cannot see the need for the FSA to provide advice. Once again, who regulates the regulator?”

FSA spokeswoman Kate Bristowe says: “All we have said is that we intend to develop an interactive fact-find. We have not developed any further details. When we do, we will address any issues.”

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