View more on these topics

Aifa wants cap-ad to reflect systems

Aifa is calling for the FSA to offer reduced capital requirements to providers that invest in adviser-charging systems.

In November, Aifa pressed for the FSA to drop mandatory RDR requirements for existing advisers to reach new qualifications, insisting IFAs should be encouraged to meet higher professional standards with regulatory incentives.

Policy analyst Julia Cooper says providers should also be offered regulatory dividends for complying with RDR standards. She says: “Providers are busily updating their systems to facilitate adviser-charging by the end of 2012.

“We would welcome a pragmatic approach from the regulator, whereby providers who have made the significant investment necessary to develop their own adviser-charging models by this point could benefit from reduced capital requirements, reflecting their reduced risk profile.”

Skandia chief development officer Peter Mann says regulatory dividends are a good idea in principle, but might not be practical in the provider space. He says: “The difficulty is that not all providers start from the same place. It is significantly easier for Skandia to comply with the RDR requirements than some of the other more traditional providers that have acquired other firms, are more transactional and do not operate on a platform.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com