Greater capital requirements, extra supervision of smaller firms and a time limit on claims against financial firms are the keys to sustaining a healthy distribution sector, according to findings published in the Retail Distribution Review.
The FSA says the new requirements, based on findings made by the Sustainability Working Group chaired by HBOS' Jo Dawson, will help allay any fears among adviser firms on the future of the advice market. According to the Group, the FSA should ensure financial resources requirements are risk-based, starting from a higher minimum requirement than at present, but avoiding a ‘one size fits all’ approach. It says making this change could mean better outcomes for consumers and a more sustainable sector. The paper reads: “Parameters for setting financial resources requirements might include:...
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