Aifa vows to push Fos for ‘fairer deal’ for advisers

The Association of IFAs will continue ongoing “discussions” with the Financial Ombudsman Service in 2012 and push for a “fairer deal” for advisers, according to director-general Stephen Gay.

Mr Gay spoke to FTAdviser ahead of a new year that he predicts will be “every bit as challenging” as what has passed, particularly for advisers as they enter the final months before the Retail Distribution Rules come into force.

He said that Aifa will continue discussions with the regulator on the detail of areas that he said require further clarity, such as the treatment of legacy trail commission, while debates over the role of Fos and the Financial Services Compensation Scheme will also be key.

Mr Gay said: “We expect our discussions with the Financial Ombudsman Service to continue as we search for a fairer deal for IFAs, and consultation on the future shape of the Financial Services Compensation Scheme will recommence.

“This will be in the spotlight as Keydata continues to cast a long shadow over the sector.”

At a more macro regulatory level, Mr Gay said that Aifa will be pressing for “greater accountability and responsiveness” from the new regulators that will replace the Financial Services Authority as the Financial Services Bill works its way through parliament, as well as an appreciation of the overall effect of further layering of cost onto advisory businesses.

He also highlighted that European authorities will increasingly flex their muscles as changes to a variety of directives, in particular the Markets in Financial Instruments Directive, progress and present the possibility of significant change to the advisory market in the years to come.

Mr Gay said: “Beyond the predictability of these heavy seas, we will also expect to turn our ship into the occasional freak wave to respond appropriately and robustly to policy changes and new government or regulatory initiatives.

“The size and shape of those waves is difficult predict, but in representing the interests of our members, it is always best to expect, and plan for, both calm and choppy waters ahead.”