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FSA to stop ‘smoke and mirror’ adviser platform tactics

Rory Percival FSA

The FSA has warned advice firms which also want to operate as platforms against using “smoke and mirror” tactics to take extra charges.

Speaking at The Platforum Annual Conference in London yesterday, FSA technical specialist Rory Percival said the FSA would check vertically integrated firms had the relevant expertise in place and were fulfilling all the duties required of platforms.

Percival says: “There can be no smoke and mirrors in this area, firms need to be operating fully as a platform, not just saying they are a platform and taking extra remuneration. It is something we are very alert to and we are careful to ensure firms know the requirements and are meeting all those requirements.”

Percival went on to make clear firms moving to such vertically integrated structures would need the relevant permissions, capital requirements and have sufficient skilled persons in place to meet the regulator’s expectations.

“We see the move towards vertical integration as a market movement and there is nothing wrong with market movements. But it is the FSA’s job to analyse the possible risks coming out of those movements.”


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There are 3 comments at the moment, we would love to hear your opinion too.

  1. “vertically integrated structures”

    Having attended the conference this seemed less than a thinly veild warning to the polemic Simon Chaimberlain.

  2. Am I to understand that some advice firms are claiming “to be a platform”


    How very odd.

    Ian Coley
    Medical Investment Services

  3. Not so very different from insurers masquerading as advice firms surely (Keydata???)!

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