In its response to the latest RDR consultation paper, the IFP says small firms have already faced significant cost increases, and will have to shoulder even more in the lead up to 2012.
It states: “We would urge the FSA to acknowledge that fact, and to commit to keeping a tight control both on its own costs, which fall indirectly on firms, and the direct costs of these reforms.”
The IFP also says the FSA should take a less intrusive approach to remuneration within individual firms.
It says: “It does need to be recognised that achievement requires reward and we are concerned that the regulator should not unduly interfere with firms internal remuneration policies. We note that many other professions, accounting and law in particular, have individual remuneration strategies similar to many financial adviser and planning firms.
“We also note that moving advisers onto a salary structure for example is a potential financial burden to the business that might have to be staggered over a period of time to meet revenue inflow changes.”
The IFP says while it broadly supports the RDR proposals, it remains concerned that the focus is predominantly on products and distribution.
It says: “It is not positioned to be concerned with advice, which not only adds value for consumers but will ultimately be the reason why consumers take action.”