The FSA needs to spend more time and resources monitoring the activities of the listed IFAs according to Master Adviser director Doug Brodie, who warned that a Mack truck may be heading the regulator's way without it even being aware.
Brodie, one of Sesame's biggest member firms, told FSA managing director David Kenmir that the regulator does not appear to be paying enough attention to the IFAs, who are collectively losing “thousands of pounds each day”.
He said if one of the listed firms – Berkeley Berry Birch, Cavanagh, Inter-Alliance, Lighthouse, Millfield, Prestbury and Sesame – went bust, the knock-on effect on the rest of the IFA community would be substantial through the Financial Services Compensation Scheme.
He urged Kenmir to ensure the FSA was aware of the potential problems with these firms rather than spending all its time minding smaller firms.
Kenmir said the FSA was well aware of issues surrounding the listed IFA sector both through the Listing Authority and the regulation of the retail sector.
Brodie says: “The FSA needs to make sure that it does not spend all of its time teaching people the Green Cross Code when it is about to get burned down by a Mack truck.”