View more on these topics

FSA reveals its regulation by risk regime

The FSA confirmed at this year&#39s PIMS conference that most IFA firms will be in the FSA&#39s lowest-risk category following N2, meaning they will require less attention.

After N2, the FSA will bring all IFAs under a new investment firms division and ranked A to D on a risk scale. Firms with a turnover of less than £1.25m or fewer than 20 RIs, which covers most IFAs, will be in the lowest-risk category D of around 7,900 firms. They will only receive regulatory attention if a problem arises.

Firms with more than 200 RIs or a turnover of more than £250m will go in to category A, needing the most attention. There are around 350 IFA firms in this category and these companies can expect a detailed risk assessment.

The FSA&#39s investment firms division covers around 8,900 firms including fund managers, securities, stockbrokers and IFAs.

The FSA says categorising firms is a way of distributing resources and not an indictment of firms. It plans to tackle problems as themes rather than visiting firms on a geographical basis.

FSA head of themes department John Liver says: “We had to come up with a risk structure that allows us to spend our resources in the best way. We will become more sophisticated in getting information from category D firms to make sure we only give them attention when it is needed. Category A firms will get more attention but it will be proactive to prevent problems occurring.”


Boards decide&#39its&#39 fate

The AITC is set to decide the future of the “its” campaign this week after receiving the final proposals from its member boards last Friday. The majority of boards are expected to agree to the extra half basis point for IFA marketing and PR but several companies, including Jupiter, have already said their boards are […]

The ins and outs of contracting

Contracting out is a risky business these days. So too is contracting in and remaining in Serps or its replacement, the state second pension. But there are things we can do that will help customers to understand the risks they face. Re-educating them will be an important first step, particularly if they have been contracted […]

Johnson&#39s DTI role defined

IFAs will continue to feel heat of Melanie Johnson’s stare after her move to the Department of Trade and Industry.The DTI has confirmed that Melanie Johnson will carry the title of Parliamentary Under-Secretary for Competition, Consumers and Markets. She will be responsible for consumer affairs, company law, competition policy, and overall policy on Europe.Johnson was […]

Revenue tax switch gives boost to offshore bonds

The Inland Revenue&#39s decision to change the way offshore bonds are taxed makes them more attractive than onshore bonds, says Scottish Life International. The claim follows the Revenue&#39s disagreement with Eurolife&#39s interpretation of tax rules, requiring tax on high-income bonds be levied on an income tax basis rather than a capital gains tax basis. Taxing […]


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 thought leadership.

    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