Director general Chris Cummings says the advice sector has everything to lose between now and October, when the retail distribution review final report is published, and must make its voice heard.
He says: “There are a number of groups who are less than impressed with the FSA’s views and will be rigorously campaigning for change.
“I would urge IFAs who feel strongly about the cause to contact the FSA directly and make their opinions heard.”
Compliance consultant Adam Samuel warns that the banking and wealth management community will be doing its utmost to change the proposals put forward in last month’s interim report.
Samuel considers that there is a risk that the regulator, which did a “180-degree shift in the face of IFA lobbying” could do the same in the opposite direction.
He says: “Under the weight of 888 responses to the original discussion paper and some astonishingly skilled lobbying from Aifa, the FSA has completely abandoned its earlier proposed structure. It is vital that the IFA community and those who believe in it respond with the same gusto to the interim report.”
There are no formal questions to make any responses to the interim report but Samuel has written his own, published above, to help advisers with their feedback.
Samuel’s own answers to the questions can be found atwww. moneymarketing.co.uk/regulation.
The FSA’s head of the RDR Amanda Bowe made it clear last week at a Westminster & City RDR conference that the proposals are far from final.
She said: “There is a lot more thinking and a lot more decision-making to do before we say whether we can make a split between advice and sales happen.”
Adam Samuel’s QUESTIONS ON THE RDR interim report
1: What do think about the proposed structure of advice, sales and unregulated money guidance?
2: How should the FSA’s new proposals apply to the group pension market?
3: What do you think of the proposed qualification standards?
4: What should we do to prevent providers influencing adviser remuneration?
5: Should we abandon the current requirement for independent advisers (in both packaged investment products and mortgages) to offer a fee alternative?
6: What do you think of the idea of on-the-job assessment as a means of proving professionalism?
7: What do you think of compulsory membership of professional bodies?
8: Should we continue to allow ‘guided sales’ to fall within the ‘execution-only’ category?
9: How should we deal with the liability issues arising out of execution-only, guided sales and sales with recommendations?
10: What should we do about primary or basic advice?
11: Are we wrong to reject a 15-year backstop period for complaints?
12: Should we read across our proposals to mortgages and general insurance?
13: How should the FSA respond to banks, building societies and wealth managers whose business models will have to change under the proposed regime?
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