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Firms must report advisers failing professionalism standards from July

Firms will be obliged to notify the FSA if any adviser falls below the required standard of competence or ethical behaviour from July.

In its policy statement on professionalism, published today, the FSA says statements of professional standing will be required for retail investment advisers who want to give independent or restricted advice after January 2013.

But the regulator adds firms should also notify it about any issues with individual adviser competence, including ethical behaviour, where this breaches existing requirements.

The FSA says: “When the RDR comes into force in January 2013, the FSA will start collecting information about individual advisers, such as the qualifications they hold and which accredited body they use.  

“However, in preparation for 2013, the first of the professionalism rules will come into force in July 2011, and from this point firms will be obliged to notify the FSA if any adviser falls below the required standard of competence or ethical behaviour.”


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There are 15 comments at the moment, we would love to hear your opinion too.

  1. Incompetent Regulators Awards Team 20th January 2011 at 11:00 am

    If we do all the work for the regulator, why do we need one at all? As if businesses don’t have any standards apart from the FSA. ha! ha!

    The FSA should get their own house in order first. Then they can make demand. Pigs might fly!

  2. To make this a little less painless what about the facility to edit certain sections of standing data about advisers and firms held on the FSA register – i.e. qualifications held?

  3. “falls below the required standard of competence ”
    Er, am i being a bit fick??….does “the requried standard of competence”, in this RDR context statement, therefore mean any adviser who isnt already level 4 qualified then? And if it doesnt mean that, then what exactly DOES it mean? simple terms that is!!

  4. Under the Freedom of Information Act –

    Cant the FSA be forced to publish all their members of staff qualifications?

    I suspect the qualifications held will be very sparse.

    Bullys and nothing more!

  5. Does this apply to the FSA as well?

    answers on a post card !!

  6. I can think of a few institutions who have fallen below the standards of competence we expect. Top among them is the FSA followed by certain banks. If you think i’m being a bit hard on them, ask the citizens of the UK what they think of our incompetent regulator and Banko Bandito’s now we are all wallowing in an ocean of national debt.

  7. The KGB would be very proud of the FSA,
    For goodness sake can’t they just go and drown themselves and leave us alone to get on and look after clients!

  8. FACT -: the FSA have now gone beyond, over regulation, and now become an embarrassment and a joke

    I think it intends to leave as much S**t as poss for the next lot to clear up

  9. Will this help?

  10. Two Extracts from the PS:

    Firms must also notify us in the event that they become aware of information which
    might suggest an approved person is no longer fit and proper using Form D.38

    This information will underpin an adviser database that, with additional insights such as alerts from firms, accredited bodies, whistle blowing, and other data, will enable us to identify the highest risk advisers.

    Dear FSA – start here:

    Between July 2006 and November 2008, Barclays sold Aviva’s global balanced income fund and the global cautious income fund to 12,331 people with investments totalling £692m.

  11. What a load of crap.

  12. Anonymous @ 12:40

    You fall well short in your list (or maybe you intended it as a “starter for ten”) of points in your “Dear FSA” letter. How about adding form the past week:-

    1. RBS & Barclays guilty of price fixing and anti-competitive practices – surely “not fit & proper” behaviour.

    2. RBS & Nat West gulity of breaching rules on handling customer complaints – surely not “fit & proper”

    3. One other bank likely to be fined over complaints handling – maybe case not proven but indicative that all is not “fit & proper”.

    If naming & shaming, fining and banning is good for the IFA goose…

  13. The Stazi - Compare and Contrast 20th January 2011 at 2:28 pm

    The FSA with The Ministry for State Security (German: Ministerium für Staatssicherheit (MfS), commonly known as the Stasi. Like the FSA when informants were included, the Stasi had one spy per 66 citizens of East Germany. Like the FSA the Stasi was said to be independent but the KGB (Treasury)continued to maintain liaison officers in all eight main Stasi directorates. Like the FSA the Stazi was unelected, unaccountable (other than to the KGB) quasi judicial, Star Chamber, Kangaroo Court!

    Do tell me if I’m wrong on any small points?

  14. I suspect that IFA’s have been reporting crooks to the FSA or their earlier namesake for many years and for many years I suspect that the FSA has been assigning these resports to “Dusty Bin”, the FSA booby prize for being a good boy or girl. Of all the things that the FSA don’t do, this is the one thing you would have thought they would do and have been doing. The very fact that we have this statement is clear evidence of “Dusty Bin”, and my suggestion is that the regulator is assigned to it and we now have a clean start when the FSA is replaced.

  15. All Pigs Fuelled And Ready For Take Off !!!! Another pointless rule.

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