It would seem yet again that the FSA appears to be regulating outside UK law, especially regarding the RDR requirement for IFAs who have not already done so to gain level 4 qualification by the end of 2012.
I have long thought this edict to be a restraint of trade but greater weight has been lent to the argument that this requirement is not legal and therefore not enforceable, the reason being that it disqualifies someone who is currently already qualified.
One of barrister Peter Hamilton’s recent articles in Money Marketing said the FSMA does not permit the FSA to cancel an author-isation simply because the FSA has changed its views on what the appropriate qualifications should be.
Therefore, it appears that the FSA cannot impose new qualification requirements on IFAs to enable already qualified IFAs to continue to practice.
The FSA must state that it is removing this require-ment from the RDR, given that is appears to be illegal, and that all IFAs can con- tinue to practise without further FSA hindrance.
DPB Independent Financial Services,