AIFA slams FSA for lack of understanding of mis-selling

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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...

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