The industry has backed FSA proposals to establish an internal model to monitor professional standards rather than set up a new statutory body.
In December's consultation paper 09/31, the regulator proposed an internal FSA model to monitor professional standards with an enhanced role for professional bodies.
A major reason cited for the internal model - as supposed to a separate Professional Standards Board (PSB) - was its cost-effectiveness. It said the ongoing costs of establishing a separate body would be approximately £5m a year.
And in today's professionalism consultation paper CP10/14, the FSA reveals the internal model has been largely welcomed by the industry.
When asked if they agree the establishment of an internal model with a heightened role for professional bodes was less costly and less complex, 51 out of 74 organisations including IFAs, providers, professional bodies and trade associations said they were in favour of the approach.
A number of other organisations agreed an internal body is most effective but expressed concerns over escalating costs and the FSA's ability to recruit sufficiently competent staff and allocate separate resources.
Meanwhile, Aifa has given its backing to the move away from an external monitoring body.
"Advisers were rightly concerned by the possibility of double jeopardy with the creation of a new regulator," says director of policy Andrew Strange. "Professionalism is vitally important, but a PSB, independent or otherwise, was the not the solution."
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