IFA firms will have to make quarterly progress reports in the pension
review bec-ause small advisers are having difficulty sticking to the
The announcement was made in the FSA's annual report addressing concerns
raised by the Financial Services Consumer Panel about IFAs' progress on
Small IFA firms represent only 5 per cent or 4,500 of the 900,000
outstanding cases but the FSA still wants quarterly public reports instead
of the current six-month reports.
The report says: “Bec-ause the sector poses particular challenges, we have
invested significant res-ources in the review in this sector.”
Aifa says it hopes the need for small firms to report more frequently will
not distract from the main business of completing the review.
In the annual report, chairman Sir Howard Dav-ies admits the regulator has
been forced to postpone some “business as usual projects and in some areas
temporarily scale back our routine regulatory activities”.
The FSA has not expanded its staff to deal with the preparations for N2,
which is expected in November, when the regulator will get full statutory
A spokesman says none of the ongoing reviews into past performance,
with-profits, polarisation or disclosure will be affected.
Financial Services Consumer Panel chairman Colin Brown says: “The
regulator has taken our views on board but we will have to wait and see how
the cases are dealt with.”