Following industrywide calls for the FSA to provide IFAs with a workable definition of misselling, Money Marketing is launching a forum for advisers to rally together and lobby the regulator to make this a priority issue.
The industry has been unimpressed by the regulator's attempts so far to ease the situation. Its much anticipated publication of a definition of misselling in April issued by chief executive designate John Tiner was greeted with less than overwhelming enthusiasm, with IFAs doing little more than raise a collective eyebrow, saying that the FSA had accomplished nothing more than reiterating the current state of affairs.
One of the key recommendations to come out of last year's Sandler report was for the FSA to define misselling.
In an attempt to help the FSA come to a workable definition, Money Marketing is inviting IFAs to write to us with suggested definitions. We will collate the results and deliver them to the FSA in the hope that this will provide the regulator with the building blocks to come up with a useful definition.
We want advisers to provide us with the following:
A suggested definition.
A justification for the definition.
How/why the definition would benefit the industry.
Momentum senior technical consultant Bob Perkins says: “IFAs are scared of a crystal ball scenario where a future ombudsman would be able to apply retrospective rulings to past sales and a proper misselling definition is the only way to solve this.”