Apfa will not head to ECHR over long-stop: Hannant
Working with the FCA will bring about change more quickly over the long-stop, Apfa director general Chris Hannant has said.
Mr Hannant said Apfa and its working group had considered approaching the European Court of Human Rights about the lack of a long-stop, but has rejected this idea, claiming this could have no effect on UK law.
Mr Hannant warned that getting an ECHR ruling on the issue could be of little use because its decisions were non-binding in the UK, adding that Apfa was still focusing on its long-stop talks with the regulator.
He said: “The FCA is looking at this issue and we are engaging with them. That is our priority, because that could effect change far quicker.
“ECHR decisions are non-binding. So the ECHR could back you but the UK would still be under no obligation to change the law.”
He noted that while the European Court of Justice had more legal clout, he could not think of a case Apfa could bring to it.
He said: “I do not think there is a case to go to the ECJ with. Nobody has suggested anything so far.”
His comments came after Alan Lakey, partner in Hertfordshire-based Highclere Financial Services, said a case could be taken to the ECHR protesting the lack of a long-stop.
Mr Lakey said: “The ECHR would quash this particular piece of misguided consumerism. It is not only unlawful but also against fairness and common sense.
“The sooner the FCA and the government recognise this, the better.”
Earlier this year, Apfa held talks with the FCA to discuss the possibility of implementing a long-stop.
In its recent 13-page document, A Manifesto for Advice, Apfa reiterated its argument that the lack of a long-stop was damaging the advice industry by creating uncertainty and deterring investment in the sector.
Right to reply
An FCA spokesman declined to comment.
