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Is the Edinburgh Declaration dead?

Now that the FSA has announced it plans to police professional standards internally, rather than set up an independent body, what will become of the Edinburgh Declaration?

In April 2008 four professional bodies including the Chartered Insurance Institute and Institute of Financial Planning, signed a joint declaration of principles for how they will supervise advisers in a post-RDR world.

One central proposal was the formation of an independent professional standards board to oversee industry standards. (article continues below)

So how does that fit in with the current landscape, where the FSA will act as supervisor?

IPF chief executive Nick Cann says: “I think the principles behind the Edinburgh Declaration are very much the same as they were. We shall continue to work to achieve similar outcomes under the new proposals although nevertheless disappointed that the FSA didn’t see the need for an independent professional standards board.

“I think that there are some areas of concern under the new proposals particularly for those advisers that choose not to be a member of a professional body.”

CII spokesman David Ross says the majority of the FSA’s consultation paper on professional standards, published in December, follows recommendations made by the Edinburgh Declarations.

He adds: “The Declaration is there to set out this framework and it has achieved that. Is it still relevant moving forward? Probably less so because now it has achieve what it set out to do. But there will still be work to do moving forward once more detail emerges.”

Was the Edinburgh Declaration a success and does it have a place in the future? Post your comments below.

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. Steve @ IFAbonus 6th January 2010 at 4:43 pm

    The FSA are breathtakingly incompetent.
    What more is there to say?

  2. Monty Python’s dead parrot is legendary, so is this.

    So will be many other “Kenmir effects”, the regulators might be better served spending ALL their time on the banks rather than persecuting IFAs where complaints are so thin on the ground, all living people in the UK have been blighted by the banking ‘crisis’, as are the people yet to be born. Everyone is searching for answers anyhwere they can, apart from within the IFA sector.

    IFAs could be part of the solution, proposals have been put forward but will the regulators ‘bite the bullet’?

    Pride comes before a fall, how do they back down from all this with their pride intact?

  3. Let’s be frank. The FSA was never going to miss an opportunity to further broaden its control and sphere of operations. It has been on an empire building mission ever since it was born.

    It will continue like a cancer simply to try and justify its own existence. It hasn’t proved yet that it is capable of succeeding in its primary function (indeed, it has proved it is incapable of meeting the objectives laid down for it).

    The sad thing is that even if the FSA were to be disbanded, virtually all of the motley crew who have failed so miserably over the past decade would be given jobs with a new regulator – albeit with higher salaries, better pensions, bigger bonuses and all the other quango-style perks.

  4. The FSA know there time will be up if/when the Tories win the next election. They are merely gathering in as many tasks as they can so that they will be able to divi them up amongst each other when their time comes.

  5. Anon 6th Jan is correct. Accountancy Age quotes a banking fraud trial where an accountant lied in court. He left his employer as a result. His new job was with Fimbra, His next job was with the FSA as a supervisor “judging the integrity of IFAs applying to the FSA”

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