News

The industry has backed FSA proposals to establish an internal model to monitor professional standards rather than set up a new statutory body.

Advisers who hold higher minimum qualifications will be more competent and less likely to make mistakes resulting in the recommendation of unsuitable products, the FSA says today.

The FSA has published the final list of authorised qualifications retail investment advisers can take to ensure they meet RDR requirements before 1 January 2013.

The FSA says it could transfer responsibility for monitoring professional standards to individual firms - providing the industry can persuade the regulator of the merits of such hands-off regulation.

Advisers will need to complete a minimum of 35 hours of relevant CPD each year, according to the FSA's latest Retail Distribution Review paper.

The FSA today unveiled plans to develop its capability to monitor individual advisers.

The FSA has said the cost of establishing internal professional standards could be more than £5m.

The FSA proposes a system of co-operation between the regulator and accredited bodies to ensure advisers are meeting its professionalism standards post-RDR.

The FSA says it needs more time to consider the costs and benefits of introducing professional requirements for advisers selling pure protection.

The FSA is proposing to introduce Statements of Professional Standing (SPS) for advisers which will be awarded by accredited bodies.