Speaking at the Tax Incentivised Savings Association platform to platform re-registration open meeting last week, Glyn said that principle-based regulation is not working in the area of re-registration and suggested that a rule-based approach is needed.
He said: “We have been talking about this issue for years. Surely principle-based regulation on this point is not working and it should be rule-based.
“The FSA should put its foot down and say if you do not allow this, you are not allowed to operate.”
But Finance and Technology Research Centre director Ian McKenna says: “There have been many in the market who have argued that the FSA should set the rulebook and force the issue. My response to that would be, be careful what you wish for. It is not their business to write rules that make our lives easy.
“There is already a current obligation upon advisers to review on a regular basis the ongoing suitability of platforms. Not only that, they have also been explicitly clear on anything they consider to be a material constraint on customers moving their investment.”