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Aifa doubts consumer benefit of practising certificates

Aifa says it doubts whether the FSA’s statements of practising standards will achieve their objective of restoring consumer confidence.

In its response to the FSA’s consultation paper on professionalism published today Aifa questions how consumer confidence will be improved by the practising certificates.

The trade body argues they will be difficult to police, given the expected number of accredited bodies that will award the certificates.

The statements of practising standards are estimated to cost between £60 and £175 per adviser, and will need to be reviewed regularly.

Aifa says: “All the statement can do is show a consumer that an adviser has achieved an appropriate level of qualification. Most consumers would rely more on personal recommendations and testimonials, not a qualification.

“Therefore we doubt whether the statements will achieve their objective of restoring consumer confidence.”

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. We need to arrive at a situation where IFAs can move freely within the profession between employers/networks/self-employment without needing to obtain regulatory approval each time. If practising certificates can be used to achieve this, as they are in other professions, then they should be promoted. At the moment we have what amounts to an unfair restraint of trade.

  2. Does anyone give any great credence to what AIFA thinks or says about anything? I have it on fairly good authority that the FSA certainly doesn’t. Actions speak louder than words.

  3. “Aifa says it doubts whether the FSA’s statements of practising standards will achieve their objective of restoring consumer confidence.”
    Ask any of my CLIENTSs and they will tell you they have had confidence in their IFA for over 30 years, so why do the FSA think the Consumer is requiring to RESTORE IT.
    They do need to restore their faith in the regulation of Banks, not IFA’s.

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