View more on these topics

Aifa wants rethink on FSCS

Aifa is calling for an urgent fundamental review of the Financial Services Compensation Scheme.

Director general Paul Smee believes the FSA needs to look as a matter of urgency at whether liability should fall more on providers that design flawed products than those who advise on the products.

He says the present system places too much liability on advisers and is calling on the regulator to revisit where the boundary lines should fall.

Smee also believes that the fairness of the FSA’s division of the industry into sub-schemes for the purpose of the compensation scheme needs to be reconsidered in the light of the relationship bet-ween claims before and after depolarisation.

He points out that at present it appears that multi-ties will be in the same contribution group as IFAs, which will work out for next year when most claims will come from a polarised age, but could fall apart in a few years when this is no longer the case.

Smee says the onset of depolarisation is a good opportunity to review how the scheme should operate, particularly as provider subsidies for IFAs cannot be expected to continue in their current state and will have to be renegotiated.

Smee says: “The FSA needs to look as a matter of urgency at the boundary lines between product provider and adviser, and where liability should fall when a flawed product has been designed by a provider but also advised on by an IFA. At the moment there is too much emphasis on the adviser.

Michael Philips partner Michael Both says: “If a fund manager cocks up on performance or charges are higher than the illustration says, then I do not see how that is the intermediaries’ fault. The levy needs to reflect that.”



Do you think joining a network puts an IFA’s own business at risk?

Cause for complaint

I recently listened to an address by the AMI’s Chris Cummings, someone who is closely involved in the mortgage market. He quoted some interesting statistics. There are 37,000 mortgage intermed-iaries. In 2003, there were just 98 complaints against them, of which 49 were upheld.This tells us a few interesting things. First, such a small ratio […]

TUC lobby on public sector pensions

Hundreds of public sector workers from across the UK will descend upon Parliament tomorrow to lobby their local MPs on changes that the Government is proposing to make to their pension schemes.

State of the markets: global growth

In conversation with journalist Alexis Xydias, Artemis Global Growth Fund manager Peter Saacke discusses the state of global markets and how he is positioning his fund. Peter gives his views on the growth potential of US, Europe and emerging markets, each of which is on a different stage of the road to recovery. And with a […]


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