The Institute of Financial Planning has warned the FSA it must develop a “catastrophe strategy” in case it reaches June 2012 and half of advisers are not yet meeting the RDR requirements.
Speaking at the IFP conference last week at the Celtic Manor in Wales, chief executive Nick Cann said although he would urge the FSA to move ahead as fast as possible, it must have a risk mitigation strategy in place for such a scenario.
He says: “For the FSA, you have to ask, what is the catastrophe strategy? By June 2012, if 50 per cent have not got there, would there be a six-month delay? Or is it if 20 per cent have not got there? They will know where people are in terms of exams but they will not know exactly in terms of model.
“You have to worry about where the focus is for some medium and big IFAs and networks. Is their focus on the current needs of their business, regulatory reviews or even business survival or is it on meeting the needs of their advisers and supporting them on qualifications and the transition?”
Cann also warns against the assumption that the FSA “knows about everything” and says that, at times, regulation does not achieve the best outcome because some big firms and organisations are “par-ked” at the regulator.
He says: “The FSA is made up of good and hard working people whose job it is to make sense of what they hear from the people they consult with.
“But we get rubbish outcomes because the banks, the platforms, the CII have got people parked down there whose job it is to spend time lobbying, messaging and wearing people down so that the weight of the message does not come from the people who can influence the best outcome.”