UK's ASIC looking at 'tick of approval' for advisers
The UK’s financial services regulator, the Financial Services Authority (FSA), is considering giving what would essentially be a ‘tick of approval’ to certain advisers as part of its review of the retail financial advice sector.
The FSA is consulting on whether advisers should be required to hold a ‘Statement of Professional Standing’, which would confirm they were qualified to give advice, had kept their knowledge up-to-date and had subscribed to a code of ethics.
Professional bodies that were accredited by the FSA would issue the Statements of Professional Standing. All bodies would be required to meet the same standards and hurdles, a move the FSA hoped would create a “uniformity of standards” across the industry and improve consumer confidence.
The FSA said it would not create a Professional Standards Board, but would instead set its own standards for investment advisers and enforce them through increased oversight — which would require more funding and staff.
The FSA is currently undertaking its wide-ranging Retail Distribution Review (RDR).
This week the FSA published the final list of qualifications retail investment advisers need to pass before 1 January 2013 in order to meet the requirements of the RDR.
Higher qualifications and ongoing study are two of the hallmarks of the FSA’s efforts to enhance the reputation of market by instilling “greater professionalism and ethics”.
FSA director of conduct policy Sheila Nicoll said enhancing trust between consumers and advisers was “absolutely vital for the future prosperity of the retail investment market”.
“From January 2013, customers will be in a position to know that anyone registered with the FSA to give retail investment advice is fully qualified to do so, and any recommendations will be made solely in the interests of the customer,” Nicoll said.
Nicoll said the changes would also “drive up standards across the market, making it an attractive career proposition for a new generation of advisers”.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
