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FSA: Networks face further strain and risk

Networks’ systems and controls could face further stress and risk in 2012 and beyond, according to the regulator.

In its 2012 retail conduct risk outlook published today, the FSA said its supervision continues to find network risks which relate to oversight of appointed representatives, monitoring procedures and compliance levels.

The paper says: “As the RDR implementation moves closer, pressure is likely to increase on firms to complete the implementation of adviser charging and to have progressed sufficient advisers qualified to Level 4 standard to deliver their business plans. This may place further strain on compliance and systems resource in the short term and may have a financial impact beyond 2012.

It raised similar concerns in last year’s outlook.

The paper also says networks’ compliance functions will be further stretched as more advisers look to AR status in networks as a way of dealing with RDR requirements.


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There are 4 comments at the moment, we would love to hear your opinion too.

  1. So destablising the financial services retail market is the ‘outcome’ of RDR! What was the main driver for RDR? Oh yes, bias in selling products because of commissions. What was the result if the FSA commissioned survey and report? Oh yes! THERE WAS NO BIAS!!!! What has been the cost of RDR? Oh yes ….. BILLIONS of £’s to the tax payer (taken their eyes off the banks), loss of financial planning and advice for ordinary people, decimation of IFAs and loss of their family income. What has / is the benefit? ……………………….. I have no idea!!!

  2. Ok so the FSA made it impossible for a small IFA practice to remain directly authorised so we were all forced into joining Networks to minimise the risk and make it easier for the FSA to regulate us.

    Now it seems they cannot cope with regulating said Networks.

    I think it’s time the FSA admitted they would like to get rid of IFAs and be hoest about it so we could all move on and get jobs doing something we actually are valued for rather than baning our heads against an expensive brick wall.

  3. Networks have systems and controls?

    When they pay their compliance people such low wages when compared to their ‘sales managers’ I am not surprised they face further strain and risk.

  4. Dear 12:34pm They were honest with me when they were the PIA. They were bringing out onerous rules at one of their ‘road shows’ and over coffee I said to the Chief Exec (Collette someone) that this would decimate the IFA businesses model and cause IFAs to leave the industry. She said she was good with this as she would rather regulate a smaller number of banks than a large number of IFAs. as logistically it would be easier.

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