The industry needs to work through the current wave of complaints against it before it can build a closer relationship with the FSA to help usher in the Mifid era, according to Helm Godfrey.
Deputy chairman Roger Sanders said the FSA seems frustrated by the findings of many of its quality of advice surveys and must be concerned that Mifid is going to lower the bar around areas such as complaint handling and suitability letters.
Sanders said: “The market is always looking back at legacy issues – complaint levels that are never published, looking back at the FOS with 660,00 people complaining, 116,000 cases being investigated – all to do with yesterday’s advice, yesterday’s sales.
“Until that tsunami of complaints has been washed away and the regulator can become comfortable that we are getting our stall in order it is going to be very nervous that we are holding up our side of the bargain.”
