View more on these topics

Flight says IFAs are being phased out by regulation

Conservative Party deputy chairman Howard Flight claims there is an unspoken objective to phase out IFAs with excessive regulation.

Flight says regulatory issues mean that retiring IFAs are finding it hard to sell their business due to concerns about negligence and the current levels of professional indemnity cover. He blames the FSA and the Treasury for the increase in the regulatory burden that is making it difficult for IFAs to do business.

Flight says his view is reflected by IFAs in his constituency who have come to him with grievances.

Aifa director general David Severn says firms must be able to do business without the fear of regulation coming back to haunt them in the future.

Severn blames the unintended consequences of FSA regulation which have left small businesses to deal with the increased costs of PI cover and levies.

Flight says: “IFAs are having a nightmare. They are an ageing breed who cannot sell their business as no one wants to buy it even though they are clean as a whistle.”

David Severn says: ” I would not go as far as Howard although many people would say that is the case.”

FSA spokesman Robin Gordon Walker says: “Nothing that we do is designed to drive people out of business although market forces can have an effect. We must deliver our stated objectives but understand the current burden on smaller firms and will be announcing a project in the near future to lessen this.”

A Treasury spokesman says: ” The Government is conscious of the need to pay due regard to the concerns of small businesses and the FSA is now working with the practitioner panel to estimate the total costs of financial services regulation, with a particular emphasis on small firms.”


Scot Life Intl’s Q2 sees indicative rates over 300 per cent

Scottish Life International releases its indicative participation rates for Q2, topping 300 per cent for the first time.The quarter, commencing March 14, sees the fund provider’s indicative participation rates for the Protected UK Index fund with 95 per cent protection surpassing 300 per cent, unprecedented in the UK.These funds are available through the Safe Combination […]

Youngsters not deterred by high house prices

The UK’s obsession with property begins at an early age, with 95 per cent of teenagers planning to become homeowners, acc-ording to research by IFA Promotion.

Great expectations for Japan

By James Dowey, Chief Economist and CIO Turnaround stories are an investor’s best friend. If successful, they prompt a widespread and possibly radical re-evaluation of the fair value of the associated assets. If one is brave enough to re-evaluate early on in the process then the returns can be very large. For over two decades […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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