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.”