The FSA today unveiled plans to develop its capability to monitor individual advisers.
In its latest RDR consultation paper, published today, the regulator proposes collecting more data on individuals in a bid to meet its consumer protection goals.
This could include using product sales data (PSD) returns submitted by provider firms matched with the adviser's individual reference number.
Currently, providers do not keep a record of individual advisers selling its products so the FSA may ask adviser firms to submit advisers' reference numbers to providers.
While supervisory activity has previously focused on firms and individuals, the regulator says it will now focus more on the risks presented by "individuals in isolation" even if they are unlikely to match the risks presented by firms.
Among the data the FSA may collect from firms are:
• the FSA Individual Reference Number of the adviser, including trainees;
• the FSA Firm Reference Number of the adviser's firm;
• the qualification status of each adviser - whether they are advising but
unqualified or fully qualified (hold an appropriate qualification);
• the date the adviser started advising (where a qualification has not already been
• the name of the accredited body
The FSA says it intends to start using this data from 1 January 2013.
The FSA says establishing systems to enable it to adopt this approach would cost it between £1.2m and £2.2m, but it says it does not anticipate costs for firms to be high because most already collect this data.
It adds it has also considered an alternative where firms would monitor their advisers and notify the FSA in the event of rule breaches.
It says this alternative approach relies on firms carrying out robust analysis, but it says it believes this is less likely to achieve its consumer protection objective.
"We are open to feedback and, were we to be persuaded to adopt this alternative approach, we would consult on draft rules to do so through a shortened consultation period," it says.
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