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‘ABI failed advisers on long stop’

The Association of British Insurers and the British Bankers’ Association have been accused of letting down IFAs by failing to submit evidence to the FSA to support the 15-year long stop.

Speaking at the Money Marketing round table on the RDR and new blood last week, Sesame executive chairman Ivan Martin claimed that FSA head of the RDR Amanda Bowe was privately supportive of the long stop but wanted further evidence from the industry.

Martin said: “From what I understand, the ABI and the BBA were asked to give evidence and they declined. A lack of evidence came from providers and I find that very disappointing because providers need a very strong IFA community.”

Martin’s views were supported by Aifa director general Chris Cummings.

Martin added: “Providers who have looked at investing in IFAs or indeed have already invested in IFAs must have a lot of evidence about how they view liabilities and the impact that has on their investment decisions. I would say, get that to the FSA and please let us get this 15-year long stop in place.”

The ABI denies withholding information. A spokesman says: “Mr Martin has got the wrong end of the stick. In principle, we support the introduction of a long stop but we explicitly said that we have nothing in terms of data to contribute.”

British Bankers’ Association director Peter Tyler says: “Our members listened to the concerns expressed by the FSA, consumer groups and other stakeholders and concluded, on balance, against pursuing the introduction of a long stop.”

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