The Association of Professional Financial Advisers is urging advisers to help it change the way the guidance guarantee is funded so it does not fall unfairly on advisers.
A spokesman said it would be asking all its members to write to their MP in addition to raising their concerns with ministers and MPs sitting on the committee that will scrutinise the Taxations of Pensions Bill.
Apfa is also urging its member firms to raise their concerns about the levy with their MPs.
In July the FCA published its consultation paper on the retirement reforms and the guidance guarantee CP14/11.
At the time, an Apfa spokesman said the proposed allocation of the levy would impose a disproportionate cost on the financial advice profession and would increase costs for consumers. The spokesman also claimed this would undermine the aim of the guidance guarantee, which was to encourage people to seek help with their retirement planning.
Apfa has opposed the allocation of costs in a response to an FCA consultation on the guidance guarantee levy. It claimed the FCA’s current proposals could allocate up to 30 per cent of the total cost to financial advisers.
Chris Hannant, director general of Apfa , said: “We’re holding in-depth discussions with the FCA over the allocation of the levy as we believe that the current proposals will impose a disproportionate cost on the financial advice profession and increase the cost to the consumer as a result. This undermines the aim of the guidance guarantee at a time when the government is encouraging people to seek help and advice with their retirement planning.
“Ultimately, parliament will decide what powers the FCA should have to raise this levy. We’re therefore calling on members to write to their MPs to explain how regulatory costs affect their business, and asking that the legislation include a requirement that the guidance guarantee levy is allocated in such a way that it does not increase the cost of advice to consumers. It’s vital that regulated advice is made affordable for consumers and is available for those who need it.”
Adviser view:
Phil Cockrell, an Ifa with Investing Ethically in Norwich, said: “We would be prepared to support Apfa’s campaign.”
