Kenmir says clash between IFAs, watchdog and FSCS was inevitable

In an exclusive interview with Money Marketing, Kenmir, managing director of regulatory services business unit and sector leader for retail intermediaries, says he could understand why IFAs are unhappy with the FSCS and the FOS.

He admits that tough times are ahead for intermediaries as they face up to depolarisation with business costs rising, investment returns poor and consumer confidence low.

Kenmir says the FSA is working hard to ensure that it understands the concerns of intermediaries and is developing its work-shadowing scheme.

He also points to a joint venture with the small business practitioner panel and the Financial Services Compensation Scheme to enable future levies to be paid in instalments. They are looking at an independent group to allow instalment payments since the FSA does not have the capability.

Kenmir says: “It is inevitable that the FSCS and FOS will be the focus because we have responded to the criticism we got last year. Is it fair the criticism they get? The problem with the compensation scheme, any compensation scheme, is that somebody has to pay for it. At the moment, that responsibility falls on firms in that sector. I have said before that I am willing to listen to anyone that has got any ideas on how the scheme can be worked in any other way. We are trying to be as open and as honest as we can about this so firms understand the reason why they are paying. That does not mean they will be happy about that.”

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