The Association of Independent Financial Advisers (AIFA) has admitted any proposal in Parliament to reintroduce a 15-year complaints long-stop for financial advisers is unlikely to make it on to the statute books.
With the House of Lords set to resume debate on the Financial Services Bill on 8 October, the trade body has confirmed it expects an amendment to be put forward, proposing the reintroduction of the long-stop.
However, Chris Hannant, policy director at AIFA, suggested that, even if the amendment was to make it through the Upper House, government opposition is likely to prevent it from being included in the final bill.
"It has been discussed with the Treasury and they have largely said it is a matter for the regulator.
"It is important that it is debated but the government has got a majority in the Commons, and that obviously has primacy, but I would hope it would be responsive to the debate."
Speaking to IFAonline recently, Conservative MP Mark Garnier revealed there was uncertainty about whether Parliament was able to legislate on the long-stop at all, or if it should be left to the new regulator, the Financial Conduct Authority (FCA).
However, Hannant insisted both routes were available.
"There's no confusion in my mind," he said. "If Parliament wanted to act, it could, and by putting it in the Financial Services Bill it would be crystal clear.
"However, given that the way the current system works, a change could equally be brought about by the FCA through its dispute resolution rules."
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