Panacea warns FCA will be a 'rebadged FSA'

PanaceaIFA published the results today (2 August) of a survey of 125 of its members, which revealed widespread scepticism about the regulator's role.

Almost 80 per cent of those surveyed predicted the FSA would take no notice of the recent Treasury select committee (TSC) report into the Retail Distribution Review (RDR).

Respondents said: "The FSA cannot be directed or told what to do because the freedom afforded to it by the drafting of Financial Services and Markets Act 2000 has ensured that it can operate free of the constraints that restrict every other quango or organisation within the UK".

PanaceaIFA said one "conspiracy theorist" responded: "They have a (not so) hidden agenda to remove the IFA".

Of those surveyed 94 per cent felt the Financial Conduct Authority (FCA) should be accountable to a higher authority, such as parliament or a watchdog.

Respondents also supported the Treasury select committee's call for a delay to the RDR with two thirds predicting a delay would have a positive impact upon their business.

One respondent said: "This would allow more time to obtain the required qualifications while continuing to service my clients. It would also allow more time for the education of the public about fees".

Derek Bradley, chief executive of PanaceaIFA, said the survey results would be passed on the Association of IFAs, Mark Garnier MP and the Association of British Insurers.

He said: "If the regulator listened to the Treasury select committee, it would allow more time to qualify, time for FSA reflection and time for the FCA and the EU to develop their future plans in tandem.

"But remember this whole report counts for nothing if the FSA chooses not to act and its initial response was not a good one. If it fails to listen, I would expect to see a very fiery response from parliament."