View more on these topics

Networks throw support behind Aifa long-stop campaign

Networks have pledged their support for the Aifa and Zurich-backed Fair Liability 4 Advice campaign calling for the introduction of a long-stop for financial advice.

Sesame, Lighthouse, Tenet and Intrinsic are all supporting the campaign which is raising awareness that unlimited liability is preventing long-term investment in the advice profession.

Alongside the networks, 500 advisers have signed up personally in support.

Sesame Bankhall Group executive chairman Ivan Martin (pictured) says: “The carrying of indefinite liabilities undermines the sustainability of predominantly small businesses, which is contrary to the Government’s wider aims to stimulate growth in the private sector.”

Tenet executive chairman Martin Greenwood says: “The advice profession deserves to receive the same treatment as other professions. The current imbalance is completely unfair on advisers and absolutely needs correcting.”

Aifa and Zurich continue to seek further support from the advice community over the need for a long-stop on liabilities. The campaign is also looking to research the impact on firms’ ability to attract long term investment.

Lighthouse Group executive chairman Malcolm Streatfield says: “The reality is that unlimited liability is proving a strong barrier to investment that would allow the profession to prosper.”

Intrinsic chief executive Richard Freeman says: “It is an unjust anomaly that financial advisers should be singled out for an open-ended unlimited advice liability.”

Recommended

2

Transact: Cash rebate ban would create huge consumer detriment

Transact says the debate about whether cash rebates to clients are equivalent to adviser commission is a “dangerous semantic distraction” from the problems that would be caused by a cash rebate ban. Transact managing director Ian Taylor (pictured) says the potential cost to investors of a cash rebate ban is “immense” because clients who hold […]

Zurich to cut 90 roles from UK life arm

Zurich is to cut around 90 roles from its UK life business. The job losses will come from senior management, finance, legal, risk, compliance, operations and marketing. The life arm employs around 1,400 at present. The job cuts are part of a group-wide process of cutting costs. Zurich has entered into a 30-day consultation with […]

City Asset Management founder dies

Viv Coghil, managing director of City Asset Management, has died following a short illness. Coghill founded City Asset Management in 1988 and was responsible for the overall management of the company; he had more than 20 years’ experience in the industry. He will be succeeded by his son Nick Coghill, who joined on June 1. […]

Active/passive split is a moot point for Fidelity

Fidelity’s investment solutions group, which manages the firm’s multi-asset and multi-manager funds, has reignited the active versus passive debate in its latest strategy note, Clockwise. Rather than supporting one strategy or the other, investment director Steven Edgley says both are important in portfolio construction and the boundary between them is not always clear. Edgley sees […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

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

  1. When AIFA asks for “further support from the IFA community”, what does this mean?

  2. I just do not see the point of LOBBYING the FSA. Lobbying is about as much use as lobbying a lion to turn vegetarian. Apart from the futility of the exercise, you will probabaly also end up in the stomach of the lion.

    Get a judicial review of the matter. The injustice affects so many of us, I’d be more than willing top stump up several hundred quid. I cannot understand why we are so timid. If we can get the courts to declare the FSA is acting ultra vires and they give way, surely it would have a positive impact on all our PII costs. Money well spent I would have thought

  3. It is clearly problematic for FOS Adjudicators to assess the ‘Risk’ of a decision made 10 or 15 years earlier. As we get further from April 1988; they are asked to assess the risk 20 to 25 years before: perhaps when they themselves were at school. A 15 year longstop would bring this problem some way back towards reality.
    The position is agravated by the FOS assumption that ‘Advice’ is fixed for ever. Lawyers and Accountants normally expect to update their advice, perhaps annually, as circumstances change. The FOS take each contract decision ‘in a vacuum’: with no account of other contracts and decisions at later client meetings.

  4. Alan,

    It means spending your money on PR to justify membership fees without any clarity of intended outcomes.

    A ‘con’ basically. ‘The industry did not want to support this’ – you can almost hear it now!

    What’s that flying pig……

  5. I am unclear why the networks have been soooo slow is coming forward on this issue. It will ONLY strike home with MPs when people start saying “I’m not going to join an industry where my house is on the line forever, because the FOS sit in judgement, as do the FSCS, regardless of merit at the time and based upon a number of factors that are illegal to use in a proper court of law”. Unfortunately, by then it’s going to be too late.

    Lobby your MP now, shout out loud…it’s not about avoiding anything, it’s about being treated equally… which will benefit the public if new blood becomes advisers.

Leave a comment