The firm behind a petition for an independent review of the Financial Conduct Authority and Financial Services Compensation Scheme’s impact on advisers has shifted its focus onto backing the Association of Professional Financial Advisers.
Back in July, Richmond House Group managing director Paul Beasley started a Change.org petition aimed at the FCA’s acting chief executive Tracey McDermott, the FSCS’ chief executive Mark Neale and Harriet Baldwin, the economic secretary, to the Treasury.
The petition called for an independent review of the regulation of advisory firms and the compensation scheme.
Several months later, it has 821 backers out of its 1,000 supporter aim.
However, yesterday an update was posted on the page stating that after meeting with both Libertatem’s Garry Heath and Apfa’s Chris Hannant, Mr Beasley has decided to back the latter and stand for election to its council at the first opportunity.
“I have been disappointed by the representation of our sector to date and lack of any meaningful achievement,” read the statement. “However, Apfa are the established, recognised voice for us and as the advice review has already commenced now is not the time for further divisions in the advisory community.”
Speaking to FTAdviser, Mr Beasley explained that while he agrees with Mr Heath’s goals and admires his passion, “the timing is unfortunate, maybe in a year he’ll have the membership to be a real force”.
Instead, with the Financial Advice Market Review already underway, he stated that existing channels are the best way to get advisers’ voices heard.
Richmond House Group was previously a member of Apfa’s predecessor Association of Independent Financial Advisers, but Mr Beasley said that the membership lapsed at a time when regulation was less of a pressing issue.
“Now our business and profession is coming under increasing attack, so having met Chris, I think it is time to support them in trying to make a change.”
He added his election to the council would also help represent a sector of the industry that is slightly underweight in Apfa’s ranks - that of the middle-sized firm - with Richmond House being home to nine registered advisers.
As for the petition, Mr Beasley said it has led to several offers of assistance and opportunities to speak at regional adviser groups.
It was driven in part by the firm’s annual FCA fee invoice coming in at £53,000 - of which £37,000 was in respect of the FSCS levy for life and pensions - compared with £8,500 last year, representing a 320 per cent increase.
“We have had no claims on our PI policy for many years, yet premiums continue to rise,” read the original petition statement. “This clearly reflects underwriters view of the severity of regulation and the sheer impracticality of complying with rules that in many instances have no defined parameters.”
It argued that the time has come for a complete overhaul of the FCA and FSCS, stating the smaller independents need a lighter touch supervisory regime and a more proportionate approach.
peter.walker@ft.com
