The Association of Independent Financial Advisers (AIFA) has warned of the potential human rights implications of FSA proposals to collect individual adviser complaints data.
Earlier this year, the regulator announced it will monitor complaints data for individual advisers throughout their careers, with information linked to Individual Reference Numbers, although the data will not be published.
However, AIFA today called on the regulator to clarify its intentions and the impact of the proposal.
In its full response, the organisation said: "If the FSA is collecting this data to provide insights on individual advisers then the misreporting/allocation of complaints against an individual adviser who has left the firm could have a material impact on their ability to - or speed of - authorisation and thus could present a restriction of trade.
"This has very clear human rights implications. The appeals mechanism also needs to give thought as to how complaints made against a firm in-FSCS default or a firm no longer trading but not in default can be appealed against and addressed."
AIFA also issued a warning about the general implications of the FSA's new data requirements, which could add to the costs financial advisers are already facing from the retail distribution review.
Andrew Strange, director of policy at AIFA, said: "The FSA should reconsider the time-scales for collection of data relating to adviser and consultancy charging.
"Our own work indicates some ambiguity from firms over the rules around adviser and consultancy charging, particularly when combined with the lack of final rules on areas such as legacy business and platform service operators."
In its consultation paper, the FSA said it will seek to collect data on adviser and consultancy charging revenue as well as information on client numbers and charging structures.
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