The Financial Services Bill has passed through to the House of Lords without any significant amendments affecting financial advisers, including the reintroduction of a long-stop.
The legislation, which will abolish the Financial Services Authority (FSA) and set up a twin peaks regulatory model, had its third reading in the House of Commons yesterday.
Liberal Democrat MP John Hemming attempted to raise the issue of the lack of a long stop for advisers, although his efforts were cut off by the deputy speaker as his point was not related to an amendment being debated.
"The Association of Independent Financial Advisers (AIFA) is fearful about the lack of a limit on time for complaints, which it says will place a burden on provisions that it will need to make to cover this open-ended provision," he said, before the deputy speaker intervened."
Speaking to IFAonline earlier this year, Chris Hannant, policy director at AIFA, said there would still be opportunities for peers to revisit the issue once the bill passes to the upper house.
"The Lords tend to be more independent by nature and there's a large number of people with diverse interests," he said. "They are much more open to ideas, whereas the Commons is more tightly whipped."
Among the amendments agreed to last night was one, proposed by the government, which will ensure that authorised persons will not be able to make super-complaints to the new Financial Conduct Authority.
Mark Hoban, the financial secretary to the Treasury, said: "It has never been the government's intention that the super-complaints mechanism could be made available to bodies whose purpose is to represent professional investors, but the debate in committee highlighted the fact that the drafting would allow that.
"The amendment therefore revises the definition of 'consumer' used in the super-complaints mechanism to exclude representatives of authorised firms."
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