FSA

The Association of IFAs says the FSA has got it wrong on the issue of prudential requirements and their apparent effect on the behaviour of adviser firms.

An adviser firm should pay a successful claim made against it out of its own coffers, the FSA today proposes.

The FSA has begun enforcement proceedings against five intermediary firms in the sub-prime mortgage market after finding "weaknesses" in lending practices and in firms' assessments of a consumer's ability to afford a mortgage.

For the vast majority of IFAs who have been offering sound advice to clients for years, the news from the RDR that a higher standard of adviser qualifications and professionalism is needed will have come as a shock.

Outgoing FSA chief executive John Tiner says the term ‘independent' should apply to advisers who both select products from the whole of the market and are remunerated by fees.

The AIC has welcomed the FSA's third consultation on the Listing Rules for Investment Entities Review, which it believes will cut regulation and make London a more attractive place to invest.

Independent research into the benefits of the suitability letter has found they are an important tool for providing clarity and transparency for customers, according to the FSA.

The FSA today says there must be greater clarity for consumers on both the price and ‘characteristics' of protection products sold by advisers and providers.

One of the core reasons for the proposed splitting of the advice market is to help improve customer access to financial products and services, according to findings published in the Retail Distribution Review.

The Association of Independent Financial Advisers has criticised the FSA's suggestion that only fee-charging advisers can truly be called independent.