AIFA slams FSA for lack of understanding of mis-selling

clock

The Association of IFAs (AIFA) today slams the FSA for ‘inferring' low capital directly influences a firm's behaviour and leads to a higher risk of mis-selling.

In its response to the regulator’s Review of Prudential Rules for Personal Investment Firms, AIFA says the FSA does not fully address the real debate about the purpose and role of capital and accuses it of a general lack of understanding of the IFA sector. In addition, AIFA calls for its Stakes in the Ground (SITG) initiative to be developed into an industry wide project, operating under a supervisory board including consumer representatives. It says this would lead to fewer complaints, a willingness to accept a statute of limitations, and help with financial capability issues. SITG pro...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Feel Good Friday: Quilter pledges £3m towards financial education

Feel Good Friday: Quilter pledges £3m towards financial education

Alongside £1m in grants supporting charities

Professional Adviser
clock 13 February 2026 • 1 min read
Brits unlikely to see IFAs despite Budget impact

Brits unlikely to see IFAs despite Budget impact

Just 19% were likely to seek advice, Continuum finds

Isabel Baxter
clock 12 February 2026 • 3 min read
Treasury consults on AR regime adding further FCA and FOS permissions

Treasury consults on AR regime adding further FCA and FOS permissions

Amid concerns about consumer harm and weaknesses in oversight

Isabel Baxter
clock 12 February 2026 • 3 min read