Aifa is warning advisers to be wary of firms making “misleading” claims over passporting into the UK and avoiding the RDR.
Under passporting rules, advice firms based in other EU member states can either set up a UK branch or offer cross-border services in the UK via the phone or internet. UK branches of EU firms must meet UK conduct of business rules but cross-border services only have to meet the requirements in their home state.
Ireland-based Wellington Court Financial Planning’s website, ifapassporting.co.uk, claims advisers can passport into the UK to “continue offering advice to consumers that may otherwise be penalised by the RDR”.
Aifa policy director Chris Hannant says: “It is misleading to say you can avoid the RDR by being regulated somewhere else.”
An FSA spokesman says: “A firm is not permitted to operate on a cross-border services basis in the UK for the purpose of evading the standards here.”
Wellington Court Financial Planning refused to comment.