View more on these topics

FSA is waging war of words, says Gummer

by Sam Shaw

Aifa chairman John Gummer has accused the FSA of trying to “regulate by speech”.

In an address at Aifa’s annual dinner last Thursday, Gummer said the retail distribution review should focus on all distribution channels, including banks, direct offerings and non-advised companies “that seem to want to serve their own interests before that of the consumer”.

He said the review should not be anti-IFA or a way to eradicate commission and added that pension reform presents a huge opportunity for IFAs.

Gummer said: “It is not for the regulator to determine the shape of the market. It should be helping participants to look after their customers better.” The regulator must be fair to all parties, he said, citing recent FSA statistics on financial promotions revealing that although 5 per cent of IFA firms are not meeting guidelines on financial promotions, 10 per cent of lenders are breaching the guidelines.

Gummer said that the FSA has delivered its message through various high-profile speeches, with the drawn-out process involving a discussion paper followed by a consultation paper and a policy statement.

He said: “This regulation via speech presents a danger because it does not allow for constructive debate. What we have got is the best possible system they could have given us. What happens though is that you get the regulator giving a speech, then the industry has to give a speech and what you end up with is no dialogue but a war of words.

“If we do not find consent drawn through a consultative process then the regulator and industry risks losing the confidence of its audience – the intermediaries and the end-consumer.”


Capita admin support for MetLife

Capita will provide admin support to MetLife on its Sipp and trustee investment plan business, which is set for launch in January 2007.

More fruitful comparisons

It is the time of year when investment managers start to finalise their forecasts for the next year and there is an almost universal view that 2007 will see a perfect soft landing for the economy, with a minimum of disruption.


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