The FCA has said it will not be consulting specifically on the long-stop as part of its consultation on the EU alternative dispute resolution directive (ADRD).
A spokesman for the City watchdog said although people were free to submit responses, the long-stop would not be covered in the FCA’s consultation.
This was despite comments by a spokesman for the department for business, innovation and skills, which had sponsored the directive.
When asked at what stage the discussions were concerning the ADRD, and whether this would prevent the introduction of a long-stop for financial advice, the spokesman said: “We understand the FCA and Fos are planning to consult on any rule changes needed before Christmas.”
In July, the FCA admitted it would have to put its review into a long-stop on hold to find out whether an EU directive prevented one from being introduced at all.
Since then the Association of Professional Financial Advisers has been waiting for the FCA, the Treasury and BIS to decide whether the directive impacts their powers to introduce such a measure.
