AIFA will propose a split in the FSCS sub-class for investment intermediaries, in a bid to separate out firms where intermediation is only a "secondary activity" and not their main business.
The idea will form part of the body's consultation paper on reviewing the funding of the FSCS, which it will publish this month. AIFA says firms which conduct several types of business tend to be higher risk than firms which purely give financial advice. Where intermediation is only a "secondary" activity the firm should be put into a separate compensation class, AIFA director Robert Sinclair argued at the All Party Parliamentary Committee on Insurance and Financial Services last night. AIFA has been calling for a public review of the Scheme's funding after advisers were hit with a...
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