Aifa says it has serious concerns about the cost and time implications of the FSA’s data collection proposals for advisers and warns they may breach human rights conventions.
Under proposals published in May, advisers will have to provide the FSA with data about adviser-charging models as part of their regulatory return and submit complaint data at an individual adviser level.
The proposals apply to advisers and providers that are active in the retail investment and corporate pension market.
Aifa director of policy Andrew Strange says: “Our member working group has raised serious concerns about the cost and time implications of the reporting proposals for firms.
“It is understood that the regulator needs access to relevant information but the data must be collected in a cost-effective manner and only when it will actually be used.”
Strange also says that the regulator’s proposals to collect details about complaints relating to individual advisers may breach human rights conventions.
He says: “We are concerned about the FSA’s intention to require firms to ’allocate’ complaints to a specific adviser and call on the regulator to clarify the intentions and impact of this.
“We believe that the market impact has not been appropriately considered and that there may be human rights implications due to the lack of appeal mechanisms available to advisers within former firms.”