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Apfa pushes FCA for regulatory dividend for advisers

Apfa has called on the FCA to introduce a regulatory dividend for advisers. 

The trade body has written to FCA chief executive Martin Wheatley outlining a series of steps the regulator should take to improve the business environment for advisers.

Apfa argues given the increased professionalism under the RDR advisers require less supervision and should therefore shoulder less of the FCA’s costs. 

It has also called for the FCA to simplify the data it collects from advisers, and for an increase in FCA reporting timeframes for advisers from six weeks to three months.

Apfa wants a commitment from the FCA to review the lack of a long-stop in 2014/15. It also wants the FCA to revisit the increase in the Financial Services Compensation Scheme investment adviser claims limit from £100m to £150m, in light of the fall in adviser numbers.  

The trade body has also called on the FCA to avoid a  “one size fits all” approach to regulating consumer credit.

Apfa also wants to see a moratorium on major policy initiatives affecting the advice sector until 2015, saying post-RDR firms need regulatory certainty.

Apfa director general Chris Hannant says: “The aim of the RDR was to improve the delivery of investment advice for consumers. Higher professional standards now, and the elimination of commission bias, will reduce the risks that consumers face. 

“For a risk-based regulator like the FCA, reduced risk should entail reduced supervisory effort. In turn, this should mean lower costs, which we want to see passed on to advisers.

“In this new landscape, it needs to be easier for advisers to run their businesses and look after clients. This is not about lowering standards. This is about creating a vibrant environment where firms can grow, develop talent and encourage more young people to join the profession to provide the advisers of the future. It is also about creating a sector which can look after consumers.”


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There is one comment at the moment, we would love to hear your opinion too.

  1. Good luck with this. It would have been nice to see an issue of reducing the paperwork in order do compliant business for simple products and main stream funds. It is total lunacy to spend the amount of time we have to for simple ISA/OEIC/Pension pieces of business.
    As usual just my humble opinion

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