CompaniesApr 16 2014

Apfa pressing FCA over long-stop plans

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The Association of Professional Financial Advisers has been in talks with the City watchdog about implementing a limitation period on liability for the industry.

According to a quarterly email update to its members, Apfa said it had “started a conversation” with the regulator over long-stop.

It told its members: “Apfa will push for a limit that would provide a fair outcome for consumers and advisers.’

Just before the FCA published its 49-page Business Plan for 2014/15 in March, Chris Hannant, director general of Apfa, called on the regulator to “make good on its promise and put a review into a possible long-stop for advisers into the programme”.

Mr Hannant was referring to the pledge made by the former City regulator, the FSA, in a parliamentary debate in 2012.

In its Business Plan, the FCA said it would revisit the matter as part of a consultation on firms’ prudential requirements, stating: “We will consider the case for a 15-year time limit on complaints to Fos, to review whether the current arrangements are delivering the best outcomes for consumers overall.”

Background

Apfa’s e-petition for the introduction of fair liability for financial advice has attracted over 4500 signatures so far, while network Tenet’s e-petition on a long-stop has beaten the 5000 mark.

Helen Turner, group distribution and development director at Tenet, said: Uncapped liability for advisers is a serious issue for our industry and it is time this was addressed.”