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RDR: Advisers may face more data scrutiny

The FSA may ramp up its scrutiny of individual advisers by capturing information about their transactional activity.

According to the FSA’s RDR consultation paper on professionalism, published today, the regulator may obtain this information from product sales data returns submitted by providers or source it directly from the adviser firm.

The FSA states: “The PSD record already requires information to be reported at an individual transaction level, although providers may not hold data on the individual adviser involved in the transaction.

“We expect that advisory firms would collect information on the sales made by their advisers at an individual adviser level. It may be necessary for us to require advisers to supply providers with the adviser’s individual reference number. Alternatively, sourcing data from adviser firms may be a more effective approach as we could then see across the range of transactions recommended for an individual customer.”

The FSA says this would allow it to improve its understanding of risks that might arise at an individual level and better protect consumers.

The FSA will consult further on these requirements later in the year.


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There are 15 comments at the moment, we would love to hear your opinion too.

  1. This information is already available to us. However, with so much information available required in different formats relating to differing product types which are ill-defined, this will cost far more than it will ever achieve. Again, idealogy at the expense of clients. When will the FSA ever learn?

  2. Why not just fund a policeman to sit in on client meetings? Oh sorry that may result in there being less lucrative remuneration for the fat cats.
    This kind of thing went on in former eastern bloc countries before the fall of communism.
    data was collected on individuals who could then be investigated. Take note fsa. It did not work. The people became sick and tired of being treated like concentration camp inmates and rose up against the fat bureaucrats who earned a living from ever increasing rules and regulations, which benefitted no one, except the fat bureaucrats.

  3. If this comes about wont it be fun to see how the banks and building societies make their reports

  4. Come on FSA, you can have all the data in the world but if you are unable to make any sense of it we will get nowhere, see under ‘Park Row’.

  5. Julian Stevens 28th June 2010 at 1:46 pm

    George Orwell’s 1984 springs to mind, with more than a dash of Franz Kafka and maybe a touch of Heironimous Bosch as well. Perhaps the way more and more IFA’s are feeling might be summed up visually by Edvard Munch’s painting, The Scream.

    What a nightmare state we’re living in ~ and to think we have to bloody pay for it as well!

  6. I had cornflakes for breakfast today. Was in for 9am.
    I had a ham salad roll for lunch. Had 2 cups of coffee.
    I spoke to 3 client on the phone this morning. Made 2 appointments. Carried out some admin.
    Got 1 appointment this afternoon.
    I might watch the football tonight.
    Am I ok to leave at 5 today.
    It is getting worse and the sooner everyone actually has the balls to stand up to them we are contolled by a communist regime. Dictators that is what they are.

  7. I wondered what it would be like to live in North Korea.Now I know.

  8. Why don’t the FSA just ask for a photo of each of us naked and be done with it.

  9. Sorry Ian but I am going to have to report you to the FSA.

    You forgot to include in your report that you passed wind twice and that is very important detail for the FSA!

  10. Interesting, are they still trying to deflect scrutiny on them for not keeping their eye on the Banks who have proved they can do far more damage to us all compared to IFA’s – what about balancing the risks of unsuitable out comes?

  11. Only a photo naked @ Mr Smug!?

    Surely they require a full MRA body scan – not to mention surveillance cameras in each of our offices.

    I began life as an Independent Financial Adviser in 1984. Clearly the year was ominous and I should have read the signs! I started my business to provide a service to my clients and to earn a modest living. I am increasingly unable to do either.

    Time to switch out the lights methinks.

  12. We may as well be naked.. 28th June 2010 at 2:45 pm

    We are unfortunately on our own at the mercy of a power wielding regulator where comparisons with communism are not far from being accurate. I might suggest totalitarian is a better description…..tyrannical also works.

    But the overriding and quite serious problem is the condescending approach adopted by the FSA. We have no protection against paper shuffling bureaucrats which ultimately cause complete breakdown in the pursuit of perfect controls. One has only to look at the NHS to see this marvellous approach in action.

    So will we see the benefit of some protection afforded by Aifa, AMI, AFB etc.,? Unfortunately I say not, but we will get lots of very articulate, but nonetheless equally sanctimonious ‘barking’ but unfortunately not a ‘bite’ to be found. The condescension of the FSA equally extends to these associations.

    Not that Cummings et al would be likely to get into a true scrap to protect the people that pays his salary…..a self serving bureaucrat is a self serving bureaucrat whichever side of the fence they may sit…..Yep, we are on our own boys and girls, god help us, because no one else will.

  13. “Transactional activity,” “consumer outcomes,” lots of other b…s!

    It smells like it, looks like it and probably tastes like it.

    And the consumer has “benefitted” so much that now they don’t trust the entire industry, save even less for their pensions and other rainy days, buy only on price and get ripped off too often.

    All this for an astronomical cost.

    Well done!!

  14. Crazy gang IFA member 29th June 2010 at 9:57 am

    ‘I had a dream once that…….’
    Now it is turning into a very unpleasant nightmare. I look forward to the demise of the FSA!!

    Oh by the way it took me 30 seconds to write this message, crossed my legs twice and sipped a coffee once, I only hope that they wont see the coffee as a sign of weakness and swoop on me for taking drugs and bringing the industry into bad repute.

  15. Richard Johnson 29th June 2010 at 3:46 pm

    Let’s not beat about the bush chaps! – it’s another great excuse for fining someone…. which is the one thing the FSA are really good at. The consumer always ends up paying and we never know where the money goes so I’m still trying to work out who’s protecting who??

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