View more on these topics

Aifa urges FSA to use leeway over directive

Aifa is urging the FSA to avoid imposing Mifid requirements on IFA firms.

The regulator is telling companies to exploit opportunities presented by the Mifid directive, such as cheaper passporting of services throughout the European Union.

But at a London conference last week, FSA managing director Hector Sants said firms should not underestimate the costs of reviewing systems and adapting them to Mifid. He said the benefits of the directive in terms of enhanced consumer protection are going to be significantly less in the UK than in some continental countries where investment advice is currently unregulated.

Aifa policy officer Vera Cottrell says: “At the moment, we do not know which out of scope firms will be affected. The FSA has leeway on whether to apply the rules to out-of-scope firms and should conduct a proper cost-benefit analysis.

“Our members are not likely to want to passport so they will not gain any benefit from Mifid and should not take on the extra costs.”

Mifid was originally thought to affect only firms handling client money but the FSA has made it clear that many more advisers will be brought into the regime as the new rules will be incorporated into its simplified conduct of business handbook next year.

The directive is set to come into force in November 2007,. Advisers will find out in the final quarter of this year whether they will be affected.

Sants said: “The implementation costs are likely to be significant and the benefits to the UK will be less easy to grasp. The clear cost of implementation of Mifid will only prove justified if firms take opportunities generated to raise revenues.”


Broker highlights overseas mortgage market problems

Brokers and lenders have come in for criticism for profiteering and failing to give proper advice on overseas mortgage applications. Overseas specialist broker Conti Financial Services managing director Simon Conn says some providers are guilty of serious abuses by advising consumers to remortgage and use the cash to buy abroad rather than take out a […]

Leaked letter reveals DWP pressure to retain RU64

The Department for Work and Pensions is pressurising the FSA to retain the RU64 rules ahead of this week’s White Paper which will set up the national pension savings scheme. The FSA was expected to abolish RU64, brought in to accompany stakeholder pensions, at a board meeting this week. In a letter to Work and […]

Live cover gap static as IP divide widens

Swiss Re’s annual industry protection report reveals that the life assurance protection gap remained static at £2.3 trillion in 2005/6 for the first time ever but the income protection gap grew to £170bn.


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