View more on these topics

PIA plans early swoop on drawdown brokers

PIA monitoring hit squads could swoop on IFAs writing income-drawdown business as early as next month in a bid to clean up the market.

The idea has sparked fears that the PIA will take a confrontational approach towards IFAs selling drawdown to clamp down on possible misselling.

The PIA last week finished a survey of 30 life offices operating in the drawdown market.

The regulator is now set to turn its attention to IFAs and will focus on firms known to have written large volumes of income-drawdown business.

PIA head of market practice Richard Cockroft is understood to be considering sending teams into IFA firms as early as March after reviewing life-office replies to the survey.

The PIA refuses to comment on the details of the visits but admits that they could become part of regular monitoring checks.

It has not made any decision on making drawdown a permitted activity despite pressure from some life offices, such as Winterthur Life.

But the PIA is now believed to favour new guidelines and tighter continuing professional development instead of extra exams.

The regulator is also understood to be considering increasing training requirements for IFAs advising on drawdown. IFAs could be banned from advising on income drawdown unless they have the correct number of CPD points in areas such as investment strategies and critical-yield analysis.

The PIA hopes to release a consultation paper on its drawdown proposals in May.

Informed Choice director Nick Bamford says: "If they come at it from how IFAs are presenting drawdown and then come to conclusions, then this is a grown-up approach. The fear is it is going after people. What is behind this?"

Carrington Investment Consultants consultant Paul Tinslay says: "Nobody likes anybody sniffing around their office. It is a difficult thing to breach but the compliance visit should be a two-way thing to help each other."


Servicing of existing business causing dismay

Is it me or have the standards of service provided by companies which have been the subject of recent takeovers and mergers plummeted? Either I and my clients are being singled out or, in the name of streamlining and improved profitability, the recent mergers have led to a depletion of administrative staff to such a […]

Liberty takes over the rest of Portfolio

Liberty International Holdings is buying the rest of the shares of Portfolio Fund Management and injecting £5m to expand the business. It is buying the remaining 30 per cent after taking a 70 per cent stake in January last year. Liberty says Portfolio&#39s funds under management have grown more than fourfold from £20m to £90m […]

&#39Small firms are dealing with Year 2000 bug&#39

Warnings that small businesses face meltdown because of the millennium com puter timebomb have been exaggerated, according to business finance specialist Alex Lawrie. A survey of 200 small and medium-sized businesses with turnover between £1m and £10m shows that small businesses are tackling the computer crisis. IT experts warn that many small businesses are failing […]

We wish you a compliant Xmas

Our industry has a large number of different awards ceremonies, with a range of different awards categories. One which appears to be overlooked is “most pedantic compliance officer of the year”. I would like to nominate the compliance officer of Securitised Endowment Contracts for the PIA logo and the words “Regulated by the Personal Investment […]

The savvy consumer

In last year’s FCA thematic review of the mortgage market, one of the key things highlighted was the “savvy consumer”. That’s the client who comes in the door with a very clear idea of what they need and expect you to get them it. They don’t think they need advice, they have after all consulted […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm