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Apfa chairman: FCA should take responsibility for failed firms

The FCA should take greater responsibility for regulated firms which fail, says Apfa chairman John Gummer.

Speaking at the Apfa annual dinner in London last night, Gummer said the FCA should “recognise its own responsibilities” in approving firms, and should bear the cost when things go wrong.

He said: “A regulator has a real responsibility for having said this company is accredited.

“One of the problems in the past has been that accredited firms – sometimes accredited against all the advice of the industry – collapse, and the industry has to pay the cost.

“That is the unfairness which most affects our members.”

Gummer also said the FCA and professional bodies need to focus more on “gatekeeping” and approving only the right people.

He said: “Apfa is keen to work with the FCA to share information to ensure that bad advisers do not pop up again elsewhere.

“We have to make sure that a professional body insists on those professional standards being upheld, and make sure the system does not allow individuals to make a monkey of it.”

Gummer added that the advice sector needs to “rapidly solve” internal arguments over definitions, such as the meaning of the advice label independent.


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There are 3 comments at the moment, we would love to hear your opinion too.

  1. E L Wisty (an only twin) 28th November 2013 at 10:16 am

    Uttering words at a dinner is all very fine, but why doesn’t APFA take the FCA to task over CF Arch – or is it too embarassing for them, in view of Gummer’s family connections with Capita?

    Whatever the reason, APFA should be screaming from the rooftops about this, and demanding that Wheatley comments publicly on this matter; either endorsing the FSA’s abuse of power or committing to a last minute deferral of the Consumer Review and an independent s.14 enquiry into the whole affair.

    Wheatley does have the chance to be the good guy in this, but he will only do so if the trade bodies put enough pressure on him. Oblique references by Gummer over a glass of Chablis are hardly likely to do so.

  2. Taking responsibility is something that has not been much in evidence at Canary Wharf. Let us hope that change is in the air (and on the ground!)

  3. I agree with Wisty.

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