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Outcome regime to pose perils for IFAs

Aifa has warned of the danger of the FSA interfering in the way IFAs run their businesses under “outcome-focused” regulation.

Last week, the FSA signalled a move away from regulation based on observable facts to regulation based on judgements about the future as part of a move to “outcome-focused” regulation.

Aifa director Rob Sinclair says: “Clearly, the FSA thinks its job is now to interfere with how businesses are run and operated and perhaps without even having any evidence to warrant this. I do not think we are ready for that. The challenge is whether the people within the regulator understand how to run a business.”

Sesame sales and marketing director Steve Young says: “It is easier to see how the FSA can apply this logic to banks but it is not so easy to see why this should apply to small IFA firms. The same judgement is being applied across the market and that is fundamentally wrong.”

Zurich UK IFA sales director Richard Howells says the move could slash the already low number of upheld complaints about IFAs to the Financial Ombudsman Service as advisers will have clearer examples of good and bad practice.


Yet another PR nightmare

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Fees under pressure. Regulatory moves against closet indexers. Rapid advances in financial technology. Shifting sentiment among investors. Such mounting challenges have led to widespread speculation about active management’s shrinking future. But a closer look inside intelligent portfolio construction today tells a story of expanding roles, added value, and innovative risk-adjusted, lower-cost solutions. Four investment experts […]


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