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.”
Skandia Investment Management is preparing a summer launch for a best ideas fund that it describes as the ultimate concept in multi-manager.
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 […]
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 […]
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.
Using an investment wrapper set up by a life insurance company in a jurisdiction with a favourable tax regime, such as the Isle of Man or Dublin, opens up a wealth of planning opportunities. Investors benefit from growth that is largely free of tax as no tax is imposed on the income and gains in […]
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It is likely the increased regulatory scrutiny on fund managers’ value could filter down to advice firms in the future In my last article, I considered the influence a non-executive director could have in challenging an advice firm’s business model in light of the pension transfer issues. Now, in its asset management market study final […]
The financial services industry has failed to find ways of nudging consumers to think about their options at retirement, despite three years of pension freedoms. A panel at the Association of British Insurers retirement conference today lamented the way companies talk to people about pensions and the lack of engagement it inspires. ABI director general […]
The new chief executive of the single financial guidance body can expect a salary of £175,000 a year, according to a job advert posted online. The advert, posted on the Cabinet Office website says applications will close in mid-May with final interviews held in early July. The date for announcing the successful candidate has not […]