View more on these topics

Severn says FSA is a slow-moving glacier

Progress in the relationship between IFAs and the FSA has been a case of one step forward and two steps back, Aifa director general David Severn told Money Marketing roadshow delegates last week.

Severn said recent successes include persuading the FSA to offer a 50 per cent discount to IFAs if they appear in more than one fee block and an agreement from the regulator to review fundamentally the way that the compensation scheme is funded.

But the former FSA business head said he is still finding it difficult to work with the regulator, comparing it with a glacier – slow-moving and hard to redirect.

In a wide-ranging speech, Seven said he saw dangers in the FSA’s treating customers fairly initiative because he said it could effectively create rules without going through a pro-per cost benefit analysis.

He also said Aifa would continue to work with the Treasury, Customs and Excise, the Inland Revenue and the DWP, scrutinising plans to ensure that new consultation pro- cesses are really necessary.

Severn said his decision to refer the menu to the Office of Fair Trading showed he would use “sharp elbows” as well as persuasion but warned the audience that a judicial review and legal challenge would be a difficult road to take.

Looking ahead, Severn said Europe was both a big opportunity and threat to IFAs, with around 75 per cent of new regulation coming from Brussels in five years time.

Severn pointed out there will be a window of oppor- tunity to review the cost of professional indemnity insurance cover in the upcoming European finance directive, with Aifa pushing hard to get a review.

Recommended

Sreve Bee on Pensions

We have just had an important indication of the way the Inland Revenue will be policing the exploitation of what it calls “unintended” features of the way the current tax regime will interface with the post-A-Day regime.

IFAs wait to see the block buster show

With combined sales of UBS’s absolute return bond fund, and DWS’s Ratebuster product topping £90m in their offer periods, the industry has been reflecting on whether these apparently safe products can deliver on their promises. Hargreaves Lansdown investment manager Ben Yearsley says the most important thing with new products is that they have good investment […]

Coventry appoints new head of intermediary sales

Coventry Building Society appoints a new head of intermediary sales in the form of Julie Jones, who has worked at the society for 21 years.Jones is receiving a promotion from senior sales manager, where she oversees the entire branch network. The new role sees Jones responsible for the intermediary sales function heading up 14 UK […]

Hard line on with-profits

Software company O&M says it is not good enough for IFAs to have clients with with-profits investments on their books. For some time now, the company, which rates providers, has said that IFAs should not be putting money into with-profits but this is now a much harder line.Director Graham Miller wants to sell his software […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com