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No IFA voice on Euro regulation

The IFA sector has no representation in the European supervisory authority drafting the detail of European regulation for markets and investor protection.

The European Securities and Markets Authority’s stakeholder group is the industry voice within the supervisor. It has representatives from stock exchanges, investment banks, consumer groups and academia but intermediaries are not represented.

Cicero Consulting head of Brussels office Helena Walsh says: “Given the impact their work will have on IFAs and other intermediaries, it is a large community that certainly has a voice in the UK. Why it is not represented is very questionable.”

Esma’s draft technical standards need to be signed off by the European Commission before they become final and it will work on the detail of the markets in financial instruments directive and the packaged retail investment products directive. Both will have major implications for regulation of UK IFAs.

Walsh says a lack of IFA representation could lead to the “nitty gritty” of European financial regulation not taking into account the needs of the sector.

She adds: “Esma does not know a lot about the intermediary world, who is selling what to who, how does that transaction operate. To say that a consumer group which looks at different things like consumer redress can represent that I find quite hard to agree with.”

Aifa policy director Andrew Strange says: “It underlines the Herculean task we have ahead to avoid becoming collateral damage in these things because people do not think about IFAs.”

Esma says it received many applications to join the group and aimed to provide a geographic, gender and stakeholder balance “between financial market participants, employees’ representatives and retail investors and users of financial services”.


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There are 12 comments at the moment, we would love to hear your opinion too.

  1. No IFA Voice, full stop

  2. Not much of a voice in the UK either

  3. We need to see this in the context of the direction financial services is taking in this country. RDR marks the beginning of the end for IFAs. The ground is being prepared for a small number of financial supermarkets carving up the market between them. This is where it is leading…

  4. thats because the FSA have told them that they will have got rid of IFAs by 2013

  5. Lets all go on strike!! (not that anyone exept clients will notice) we seem to be invisible and dumb to anyone with power over us!

  6. Green Eyed Monster 1st July 2011 at 10:14 am

    I assume AIFA has someone living in a tent on the steps of the European supervisory authority’s office displaying placards demanding representation.
    I assume our MEPs have been asked to support the man in the tent. Have they refused ?

    What are the names of the MEPs that agree that IFAs should not have any representation in the drafting of legislation?

    Some more digging to do MM.

  7. Garry

    Actually thats what I meant.

    No voice anytime, anyplace, anywhere.

    sounds like a drinks advert 🙂

  8. Well the IFA does have a Ventriloquist Dummy called AIFA & PFS. The Networks and Regulators pull the strings and the AIFA Dummy says: No grandfathering, no grandfathering, give us your money, give us your money!

  9. 🙂

    The hands are certainely in the right place :-0

  10. Green Eyed Monster 1st July 2011 at 11:15 am

    “cometh the hour cometh the trade body”
    Is it not time for Garry’s new organisation to emerge?

  11. Steven Farrall (Adviser Alliance) 1st July 2011 at 3:07 pm

    “Esma does not know a lot about the intermediary world, who is selling what to who, how does that transaction operate. To say that a consumer group which looks at different things like consumer redress can represent that I find quite hard to agree with”. Brilliant. Stunning. Says exactly why central planning always fails (unless it ends up as totalitarianism – which is a failure anyway). Central planners are and always will be entirely ignorant of anything they try and plan. And yet the stuff that they know nothing about works brilliantly. And the stuff that they do know about, doesn’t, like busting dozens of banks for example. Also implicit in the statement is that the central planners believe that all businesses stitch up all their clients/customers all the time. Whereas all the stitch and corruptions always emante from the State,, in this case the EU which is a racket set up to serve its functionaries.

  12. very good post, i was really searching for this topic as i wanted this topic to understand completely and it is also very rare in internet that is why it was very difficult to understand

    thank you for sharing this.


    Stock Market

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