View more on these topics

IFAs may escape full impact of wider laundering rules

IFAs may escape the full force of the extension of FSA money-laundering regulations aimed at covering pre-1994 financial services clients.

The regulator plans to extend the regulations and compel the financial services industry to ensure that they have adequate identification on file for clients on their books before 1994.

But the FSA says IFAs may not bear the full brunt of the extension as decisions will be made about establishing thresholds for certain groups.

Most IFAs are not regulated to handle client money, so the funds that they deal with usually come from UK banks in the form of cheques, with clients having already gone through the money-laundering clearance.

The FSA also says any extension of the regulations would be less onerous for IFAs because they tend to have long-running relationships with their clients and tend to keep better records of identification and current addresses.

Aifa, which will be having talks with the FSA before the regulator issues a consultation paper this autumn, says the removal of the 1994 exemption could potentially be damaging for IFAs.

Aifa technical officer Linda Chandler says: “It could be a real headache if all clients have to be revisited but if it is only active clients then it may not be that bad.”

FSA spokesman Patrick Humphris says: “We want this to be easily manageable and not a bureaucratic exercise.”

Recommended

FSA to review overlap between CP121 and mortgage regulation

In its response to mortgage regulation consultation the Treasury has said the FSA will consider the links between the CP121 polarisation review and mortgage regulation.Although there was no mention of polarisation in its consultation document because it concerns the investment market, it says in light of feedback it now recognises the same market failures could […]

Appointed rep regime to be extended to mortgage regulation

The Government still intends to expand the appointed representative regime to the mortgage market according to the Treasury&#39s response to its consultation published today.It says no respondents had a fundamental objective to this proposal but some were concerned with the detailed rules around the regime. It says these matters are for the FSA to consult […]

Four cheats in the wind

Cowes Week is usually the preserve of well-heeled yachting enthusiasts desperate to show off their skills on the water. But not last weekend, when teams of four from MM and a salmon-coloured down-market rival went head to head in a race arranged by Skandia to see which paper deserved to take the helm of the […]

Industry must make its voice heard

Money Marketing warmly welcomes the fact that some companies and trade bodies have stopped giving a warm welcome to Government-inspired reviews.We recklessly welcome the decision by several companies and trade bodies – to name but a few, Scottish Widows, Norwich Union, Scottish Life, Fidelity, Jupiter and the IMA – to stop giving cautious welcomes to […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment