Regulation  

Apfa to resume long stop talks with FCA

Apfa to resume long stop talks with FCA

The City watchdog will this autumn continue to work towards a consultation on ways to limit the liability on financial advice.

Chris Hannant, director general of Apfa, which is spearheading the long-stop campaign, said he and his campaign partners, including Zurich, were set to meet with the regulator over the next couple of weeks to discuss options to limit the liability on advice.

Furthermore, he said the announcement of the Financial Advice Market Review could prove to be an opportunity to sort out the issue of adviser liability once and for all.

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The FCA plans to publish its opinion on the long-stop campaign in autumn, which will be followed by a consultation.

Mr Hannant added: “Most barriers to a thriving and varied advice sector come from the unfair rules surrounding liability, including the lack of a long stop for advisers, meaning liability is uncapped and remains with advisers until death.”

Long-stop discussions between the FCA and Apfa were put on hold in 2014 because of the regulator’s concerns about its possible incompatibility with the UK implementation of the Alternative Dispute Resolution (ADR) Directive, which aims to enable consumers and traders to resolve disputes without court action.

Regulatory view

The FCA declined to comment on the matter of long-stop discussions. However, last December the regulator said it would look to implement the ADR Directive in a way that would not prevent a long stop from being introduced, and talks with Apfa resumed.