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FSA’s placement plan casts shadow on IFAs

The FSA’s plans to have members of its staff shadow IFAs at work has met with a mixed response from the industry.

The regulator says the main purpose of the placement scheme is to allow FSA employees to experience the sales process at first hand for a few days to enable them to gain a better insight into the life of an IFA.

The FSA also says it hopes advisers will benefit from the scheme because they will have the opportunity to gain insight into regulatory matters but not all advisers are convinced.

Brentchase Financial Planning mortgage specialist Mike Fitzgerald says: “I cannot see this initiative being of any benefit to advisers or clients. It would just slow everything down. It would be far more beneficial if the FSA arranged more regional workshops for small adviser firms.”

CBK principal Peter Chadborn says: “Advisers may regard it with caution because it is the ultimate test although it does make perfect sense. I would not be averse to it once our TCF has bedded in and our systems are as effective as they need to be.”

FSA spokesman Robin Gordon Walker says: “We hope that this scheme will be valuable for our staff to gain this experience and we hope that this will also be of benefit to advisers.”

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