The FSA says it could replace menu and initial disclosure documents (IDD) with new requirements in 2008.
In its July newsletter, the regulator says it will be testing alternative disclosure documents with consumers as part of its review of depolarisation adding that, should the research show it necessary, “we will introduce any replacement in 2008”.
From November, firms will be able stop using the current menu and IDD and develop their own disclosure methods so long as they meet new rules set out by the Markets in Financial Instruments Directive (MiFID).
The FSA also says it is continuing to monitor firms with clawback debts following a project researching the position of around 150 advisers.
It says it will target particularly those companies with debts with more than one provider, large debts in relation to their size, and those where there is evidence of legal action being taken against by providers.
Earlier this year, the FSA looked into claims of drawback debts at 150 IFA firms. It says either the firm had debts or had “shown evidence of financial weakness”. It then visited the 15 firms the FSA deemed were most concerning.
It says the firms with clawback debts tended to have poor systems and controls and selling practices. All but one of the firms is taking remedial action, the regulator says.
In addition, the newsletter outlines the significance of the upcoming quality of advice visits and mystery shops, which are due to start in September.
The FSA says the visits will be the same as similar visits to around 50 personal investment firms last year. It says it will revisit some firms as well as see others for the first time.
The newsletter also outlines the FSA’s new management information tools which “should be helpful for firms in addressing their treating customers fairly initiative” and also encourages advisers to have their say on the Retail Distribution Review.
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