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United call for DPS to be used across all sales channels

The FSA&#39s defined-payment system should be applied across all sales channels or not at all, delegates at the Money Marketing G80 conference heard from a variety of speakers.

Speakers at the conference unanimously condemned the FSA&#39s proposal to apply the definedpayment system solely to the IFA sector as unworkable, unfair and likely to distort the market.

Delegates expressed concerns that, while CP121 had worked out a regulatory structure for IFAs in the future, it contained no detail on how non-independent distribution would be regulated.

Syndaxi Financial Plan-ning principal Robert Reid said the FSA did not have the resources to police the new rules for IFAs and had not even started drafting rules for authorised financial advisers.

Reid argued that the proposals did nothing for the FSA&#39s objective of reducing the number of organisations it had to supervise, as many IFAs will become AFAs.

Reid said: “The FSA does not have the manpower or the skills set to regulate the rules as they stand and they are already finding it difficult to draft the rules for AFAs.

“There are serious logistical problems and the FSA is not in a state to deal with them.”

G80 delegate and Inst-itute of Financial Planning president Simon Pym Williamson said: “If the FSA is concerned about consumers having alternatives to commission, then the defined-payment system should be brought in across the board.”

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