The IFA Centre is calling for advisers to report any instances of consumer detriment resulting from firms passporting into the UK so the adviser lobby group can pass the information to the FSA.
Under passporting, advice firms based in EU member states can set up a UK branch but will have to meet UK conduct of business rules. Alternatively, they can operate cross-border services via telephone or the internet and only have to meet the requirements of their home state.
Speaking at the PanaceaIFA conference in London last week, IFA Centre managing director Gillian Cardy (pictured) asked IFAs to tell the lobby group about any consumer detriment caused by passporting firms.
She said: “If passporting is detrimental to consumers, then we can warn the regulator about it.”
The Treasury select committee warned the FSA about the potential impact of passporting in its report on the RDR, published in July. It said the committee does not want to see it being used to avoid RDR rules.
The regulator responded in November saying it has processes in place to monitor the use of passporting and will refer any firms using the process to avoid the RDR’s rules to their local regulator.
Forty Two Wealth Management partner Allan Dick says: “If passporting is hitting consumers, the FSA must be told.”