The FSA proposes a system of co-operation between the regulator and accredited bodies to ensure advisers are meeting its professionalism standards post-RDR.
It recognises trying to separate issues when the FSA would take action and those
where a third party body should act is "particularly difficult".
It says: "Although it is possible to set out examples, the reasons for the issue, the seriousness, the adviser's track record and the involvement or not of the firm will all influence our view on the need for our intervention."
"On becoming aware of an issue, we will decide what action we should take. For
example, we may act where there are wider issues at the adviser's firm, and/or an
appropriate action would be to prohibit the individual from the industry."
However, the FSA may decide the case can be dealt with by the referring
body - for example requiring the individual to carry out additional CPD activity.
The accredited body might then decide it no longer wished to offer its verification service to an adviser who did not co-operate with a request to carry out additional CPD.
Accredited professional bodies will have to prove they can act in the public interest and further the development of the profession.
They will have to carry out effective verification services, have appropriate systems and controls in place and provide evidence to the FSA of continuing effectiveness as well as co-operate with the FSA on an ongoing basis.
Today's paper says firms will be responsible for ensuring their advisers retain appropriate records and documents related to their CPD and, on request by the accredited body, are able to provide sufficient evidence to demonstrate their compliance with requirements
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