View more on these topics

‘Don’t use a foreign route to sidestep the RDR’

Aifa has warned that firms should not see passporting into the UK under a foreign regulator as an easy route to try to escape the retail distribution review.

In its paper, Advice Horizons, Aifa says some foreign regulators are often not as familiar with IFA issues as many countries do not have a large intermediary presence.

It warns that it can be very difficult for firms to understand and align compliance requirements when they are under the jurisdiction of two different regulators.

Aifa says firms might look to do this in order to fall beyond the complaint regime of the Financial Ombudsman Service and not have to pay Financial Services Compensation Scheme levies.

But it says: “Firms must gain authorisation in the home state of their choice – and so deal with that nation’s regulators who are, in general, less experienced in dealing with intermediary firms – given the small-scale nature of the IFA community abroad.”

Aifa says that firms passporting in would be subject to any regulatory changes that the home state regulator decides to impose.

It adds: “The costs of setting up in a different country, managing the domestic legislative and regulatory demands and also of supervising staff based in the UK can be demanding.

“It is not the easy option it may be portrayed as but, as firms outsource many of their activities, it is a matter that should not be ignored, especially given the tax plans of the UK Government.”

Recommended

Leeds BS profits leap

Leeds Building Society reported a 10 per cent increase in profits for the first half of 2010 to £18m from £16.3m in 2009.

FSA probing Coutts over AIG fund sales

The FSA has launched an investigation into Coutts & Co over the sale of the AIG enhanced fund. Royal Bank of Scotland, which owns Coutts, revealed last week as part of its interim results for 2010 that the investigation surrounds the sale by Coutts & Co of the AIG premier access bond enhanced variable rate […]

Wright in LVAM move

LV= Asset Management has appointed Matthew Wright as head of sales from Fidelity International, where he was head of discretionary business.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com