View more on these topics

Aifa demands more clarity as 87% miss TCF deadline

Aifa has called on the FSA to give more guidance to advisers over treating customers fairly after only 13 per cent of bigger firms met the March deadline.

The FSA’s TCF update, released this week, shows that only 13 per cent of relationship-managed firms met the deadline which required them to have management information in place to test the effectiveness of their TCF systems.

However, the regulator says many firms have invested “significant time and energy working to measure TCF” and it still expects that 80 per cent will meet the December deadline of being able to demonstrate they are consistently treating their customers fairly.

The FSA says it will take “tough action” on the worst-performing firms, including enforcement action and increased penalties such as requiring firms to hire external consultants.

It will undertake assessments between January and June 2009 of relationship-managed firms and TCF assessments will form part of the regulator’s Arrow visits. It will also use other external sources which could include trade body surveys. Results of this work will be published in September 2009.

Director of treating customers fairly Sarah Wilson says: “We now expect all firms to maintain their momentum and to undertake a significant amount of further work to meet the December deadline of demonstrating that they are consistently treating their customers fairly.”

Aifa director general Chris Cummings says it is surprising that so many relationship-managed firms, which have the benefit of regular FSA dialogue, failed to meet the deadline.

He says: “What does that say about TCF as a regulatory initiative? The FSA has not been clear about what it is looking for from firms but it is not too late for small firms to get engaged with the process and use the good practice notes that Aifa has published to meet the December deadline.”


Tax and figures

Offshore insurance bonds offer a number of potential tax advantages. These include the fact that capital growth within offshore bonds is virtually free of tax, policyholders can switch between funds within bonds without triggering a capital gains tax liability, bonds can be assigned to lower-rate taxpayers and the policyholder can decide when to cash them in and thus when they face their tax liability.

Cowdery puts off consolidation plan after B&B rejection

Clive Cowdery’s Resolution will return to the market in September with plans to buy mortgage assets from investment and retail banks after it failed to secure a big shareholding in Bradford & Bingley.

‘RDR will drive consolidation’

Consolidation is set to accelerate in the intermediary sector this year as the retail distribution review shakes out the weaker performers, predicts Cavanagh group director Simon Redgrove.

Artemis Global Income: Making sense of global markets

The rally in cyclical ‘value’ stocks paused for breath in February, as investors took a more cautious tone and switched their attention back to defensive areas. In this article, Jacob de Tusch-Lec, manager of the Artemis Global Income Fund, explains how he has positioned the portfolio, given the many economic, geopolitical and policy risks that […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm