The FSA's proposals on the future of independent advice have come in for criticism from Aifa, Jupite...
The FSA's proposals on the future of independent advice have come in for criticism from Aifa, Jupiter and Fidelity.
Paul Smee, director general of Aifa, believes the onerous requirements for those intermediaries who wish to remain 'independent' rather than 'authorised' mean the sector could contract by up to 90%.
Those who wish to remain as IFAs have to conform to a defined payment system (DPS) under which they agree in advance with clients on how fees are calculated.
Smee said: 'This is going to create a series of hurdles over which few advisers will be willing to pass.' Fidelity argues the regulator's expectation that changes to admin and systems can be put in place by the end of 2002 is not realistic.
Jupiter feels that DPS should be abolished in favour of an improved disclosure regime.
Steve Glynn, joint managing director at Jupiter, also noted: 'The unit trust structure, as it currently stands, does not allow for the rebating of trail commission into a customer's investment. This structure would either have to change, or unit trusts would be forced to convert en masse to an Oeic structure.'
For a full assessment of responses to the FSA's depolarisation proposals see Invest
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