Alongside this research, Mr Hannant said Aifa was calling on parliament to change the Financial Services Bill to get the Financial Conduct Authority (FCA) to reconsider a long stop.
In a video interview with Financial Adviser’s Simoney Girard, Mr Hannant said in any other walk of life liabilities were capped after a certain period of time and it was only fair that the same should apply to financial services.
The lack of a cap on liability has meant that the industry has struggled to attract investment and it has caused problems for businesses when they are bought and sold.
He said: “It acts as a retardant on developing a strong investment advice industry.”
Mr Hannant said advisers can back Aifa’s campaign by going to the trade body’s website and registering.
When asked about support for the campaign so far, Mr Hannant said Aifa had been contacted by a 61-year-old intermediary who had been advising for 23 years and had never had a complaint and yet would take his liability “to his grave”.
