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Smee warns that IFAs face long summer of regulation

IFAs face a long, hot summer of regulation, with a raft of issues to be dealt with before the FSA publishes its findings on the CP121 proposals in September, says Aifa director general Paul Smee.

He told delegates at the Money Marketing G80 summit at the Celtic Manor in Newport, Wales that the pace of change would not let up just because CP121 responses had been filed.

Setting out the calendar for regulatory changes this year, Smee reminded delegates that the Sandler report on with-profits, the Pickering report on pensions and the Inland Revenue report on the simp- lification of the taxation of pensions are all due to be published in June and warned that something very radical is likely to come from these reviews.

Smee said July would bring the next stage of the FSA&#39s consultation on product disclosure, changes to key features documents and consultation on annuities.

He argued that offering sensible suggestions on a framework on how to enable consumers to get the best annuity result might lead the FSA to listen to IFAs more on the issue of raising the age 75 limit for annuity purchase.

September would bring the results of CP121 and the publication of the draft rules for a depolarised market as well as the FSA&#39s cost-benefit analysis for the proposed changes, which, said Smee, gave IFAs another opportunity to influence the detail of the new regulatory framework.

Smee said reviewing the draft rules and conducting the cost-benefit analysis would take around two to three months.

He said: “It is going to be a long, hot summer. The timetable for the implementation is not clear but there is talk of a sensible pace. There is still a lot to play for and we can influence the detail.”

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