View more on these topics

FCA: Small firms may need to outsource to survive

Rory-Percival-2012-700x450.jpg
FCA technical specialist Rory Percival

The Financial Conduct Authority says small and one-man adviser firms will still be able to operate effectively in the post-RDR world but may increasingly need to outsource a lot of their functions.

Speaking at The Platforum Roadshow in London yesterday, FCA technical specialist Rory Percival said the new regulatory requirements may be beyond the abilities of one person acting alone.

He said: “Taking on board changes in the market, reviewing the market and doing all required as one person may be beyond the abilities of many people.

“But with a lot of those functions it is reasonable to outsource and through this smaller firms or one-man bands can operate reasonably effectively.”

Percival added that when using outsourced tools providing ”factual information”, advisers do not have to double check results and can take them on face value.

Examples include product provider information about underlying investments in a fund, and providers’ calculations to determine projections of product performance.

He said: “When looking at information or tools provided by third parties, it is reasonable for you to take as read factual information you are given without any further digging.

“If you enter numbers into a tool and it comes up with X as the result you are not expected to double check that answer.”

Recommended

Apprenticeships offer new routes into financial services

The quest for new apprentices for financial services has stepped up a gear in the last couple of months. Last month, The Chartered Insurance Institute announced that the total number of apprenticeships at financial services firms past 1,000 in the last 12 months. CII relationship manager Casper Bartington says: “Crossing the 1,000 mark for new […]

Alliance Trust Savings poaches Standard Life international manager

Alliance Trust Savings has appointed Standard Life international propositions manager Sara Wilson as head of platform proposition. Wilson will head up ATS platform development across both its intermediary and direct channels. ATS proposition and service director Elaine Maddison says: “Sara’s appointment to the management team will help drive the development of our proposition to further […]

Happy while you work

Well we’ve had scorching weather (yes even up here in Scotland!) and now the Euros 2016 are on – you can’t blame people for wishing life was just one big holiday.  With all these distractions it sometimes feels like work just gets in the way of having a good time! But sunny day skivers are […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 8 comments at the moment, we would love to hear your opinion too.

  1. But if you outsource them no doubt you will still be responsible if anything goes wrong.

  2. Derek Bradley ceo Panacea Adviser 17th April 2013 at 4:18 pm

    Rory states that “If you enter numbers into a tool and it comes up with X as the result you are not expected to double check that answer.”

    This statement is most welcome, BUT, if it turns out that there are faults & failures that manifest themselves with the benefit of hindsight, who compensates the consumer who may have suffered as a result?

  3. Very interesting statement – ‘When looking at information or tools provided by third parties, it is reasonable for you to take as read factual information you are given without any further digging.’ Do you think the FOS or FSCS will agree with him. Would this apply to the likes of Keydata?

  4. Oh great – yet more expense. What planet do these people think they live on where expenses can keep going up and up and up without any impact? The only place seems to be at the FCA as they can pluck a figure out of the air and it is paid. They must think the rest of the world works in the same way. This man is nuts!!!!!!!!

    The then says ” when using outsourced tools providing ”factual information”, advisers do not have to double check results and can take them on face value.

    Examples include product provider information about underlying investments in a fund, and providers’ calculations to determine projections of product performance.” Until the next batch of Arch Cru cr*p hits the fan that is.

  5. Doubting Thomas 17th April 2013 at 5:19 pm

    I’d keep this as evidence when the next scandal crops up about – seem to recall some big claims against IFA’s for not checking the validity of where firms invest rather than relying on the literature!

  6. I think the irony is that Rory Percival is being criticised when we actually agree with him NOT with the FSCS or FOS position on Key data or the FSA position on Arch Cru. Perhaps we should only pay FCA fees in future and refuse too pay FSCS and FOS fees via the FCA as how can he act as debt collector for them if he disagrees with them as his comments imply.

  7. Endowments Keydata Arch Cru.
    Do not believe him.

  8. Interesting post! Outsourcing is an advantage I supposed. It will save money at the same time. That’s why there are companies who are engage on this.
    Margraffix.com

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