The Association of IFAs (AIFA) says the FSA is demonstrating a "clearer understanding" of the advice market.
It says the regulator’s latest feedback statement on its Review of Prudential Requirements for Personal Investment Firms – part of the RDR - suggests it has changed its mind on some issues, including the influence of low capital on a firm's behaviour. Last year's RDR Discussion Paper proposed the use of risk-based prudential requirements as an incentive to achieve higher professional standards, and to adopt remuneration practices not influenced by product providers. But AIFA criticised the paper, arguing it failed to address the “real debate” about the purpose and role of capital. Now A...
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