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Smee says FSA is not against small IFAs

Aifa director general Paul Smee says the FSA does not want to see the end of smaller IFAs.

Smee told delegates at the Bankhall conference that he sees a wider remit for the regulator in future that will go alongside its much discussed lighter-touch regime.

He pointed to CP193, the FSA&#39s latest offering on resolving the professional indemnity crisis, as an example of this adjustment in its attitude tow

ards smaller IFA firms.

The paper suggests a move towards greater responsibility for balancing PI cover and excesses on individual firms&#39 management teams and removes the mandatory wording on compliant PI policies which Smee said will alleviate some of the problems faced by smaller companies.

Smee said: “The IFA will not have the regulator breathing down their neck but more responsibility will be put on management for PI. The FSA does not want to see the end of the small IFA so I advise firms not to get paranoid but to get smart about compliance.”

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