Advisers have responded angrily to an FSA decision not to reintroduce a 15 year long-stop rule on complaints, but the Financial Services Consumer Panel (FSCP) backs the move.
As part of today's Retail Distribution Review (RDR) feedback statement, the regulator says it has been "unable to demonstrate" where the benefits to advisers of a long-stop outweigh the disadvantages to consumers potentially hampered by one. This is despite FSA estimates suggesting reducing the time for holding records to 15 years would save an average advisory firm £3,000 a year. Lord David Litsey, chair of the FSCP, describes the rejection of the long-stop as "a good step". "We were suspicious of the industry pushing forward with consumer responsibility issues at this time," he says...
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