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Aifa issues human rights concerns over FSA data collection

Aifa says it has “serious concerns” about the cost and time implications for advisers due to the FSA’s data collection proposals.

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 complaints data at an individual adviser level.

The proposals apply to advisers and providers active in the retail investment and corporate pensions 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.

“While it is understood that the regulator needs access to relevant information, the data must be collected in a cost effective manner and only when it will actually be used.”

Strange says that adding separate costs to the implementation of the RDR “breaches” its original cost benefit analysis.

He also says the regulator’s proposals to collect details about complaints relating to individual advisers may breach human rights.

“We are also concerned about 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 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.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Pissed Off IFA 25th July 2011 at 1:40 pm

    AIFA have been quiet for a while no doubt because not renewing membership of AIFA is one of the economies that IFAs have had to make. However, whilst this condemnation of an FSA directive/proposal may be laudible it is hardly the most important porblem an IFA has to contend with at present. AIFA need to focus on other issues to make IFAs thing they are worthwhile.

  2. I’m a bit surprised that AIFA have chosen such a minor point to have a go at the FSA as requesting data is part of their job even though as IFA’s may not like it.

    I would have fought that AIFA would attack the FSA on a number of other areas concerning RDR implementation including VAT, Grandfathering is, and protection of trade issues rather than looking at minor points of the regulation like this.

    This just smacks of grandstanding and is not very helpful!

  3. This is not a minor point actually! It exposes flaws with adviser charging which previously have not been noted by the IFA community at large. Also it is a response to a CP – what would you have AIFA do? Ignore it and let the FSA do what they want?
    VAT, qualifications are the headline items but adviser charging impacts on equally important areas and if you actually read what AIFA has questioned you may appreciate the seriousness of these issues and their importance. (e.g. the treatment of legacy commissions and how they fit into data collection) By understanding what data the FSA want and how they wish to collect it you realise how much of a pain adviser charging will be. Is anyone aware that when you charge a client for advice under adviser charging the initial charge must include 1 years of servicing up front.

  4. Human Right – load of tosh, just like the TSC! IFA’s don’t have human rights. IFA’s aren’t human. We’ve been getting away with this one ever since FSMA 2000 & even elected MPs can’t touch us!

    Signed

    HECTOR

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