AIFA says FSA must recognise 'lower-risk' firms

Scott Sinclair
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The Association of IFAs (AIFA) has told the FSA there are plenty of "risk indicators" it could use to determine which firms should contribute lower annual fees.

A good complaints record, encouraging its advisers to join a professional body and voluntarily holding additional levels of capital could all be held as signs of a lower-risk entity, it says. Additional information the FSA plans to collect on firms' product sales data (PSD) could also be used as an indicator, AIFA policy director Andrew Strange says. In February, the FSA said assessing individual firms' risk to the market would present it with "significant" operational challenges and costs. However, last month, it declared it would be "happy" to consider further research in this ar...

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