Almost 600 advisers have signed adviser support group Tenet’s e-petition in favour of the introduction of a regulatory long-stop.
More than 100 advisers had signed the petition by the end of its first day online, while more than 560 signatures had been added at time of going to press.
Helen Turner, distribution and development director for Tenet, said she hoped to get more than 10,000 signatures in the next 12 months, which would then allow Tenet to bring the matter to the attention of the government’s petition committee.
The petition calls for an amendment to the Financial Services (Banking Reform) Bill which would allow for the removal of subordinate FCA legislation that currently allows the Financial Ombudsman Service to consider any claim on advice without a date restriction.
The FCA has refused to commit to a debate on a long-stop, preferring instead to concentrate on the bedding in of the new RDR regulations.
Ms Turner said: “There have been a number of initiatives in the past attempting to introduce a long-stop for financial advisers and at times the regulator has acknowledged that it is something that should be explored.
“However, disappointingly, this has not turned into action. One of the successes of RDR has been a continued rise in professionalism, and this needs to be acknowledged by affording the same protection to advisers that other professions have.
“As long as indefinite liability remains, it will become increasingly difficult to attract advisers. Mergers and industry innovation will be stifled and professional indemnity is left to hopefully cover the great unknown.
“We therefore launched this e-petition to attract the support of the whole financial services industry. We also hope it will receive significant backing from the public at large to bring about a positive change.”
Adviser View
Simon Mansell, managing director of Worcestershire-based IFA firm Temple Bar, said: “Directly regulated advisers can seek protection by trading as a limited company or an LLP and then winding up as and when they retire.
“A long-stop is even more relevant for network members who generally do not incorporate and if they do, are not then able to use the corporate veil. While I commend Tenet on this act, it must be said that until the long-stop is available financial advice remains dangerous if offered through a network.”
To sign the e-petition, click here.
