The Financial Services Authority (FSA) is thinking of dropping its description and definition of a two-tier system of advisers in favour of the proposals put forward by AIFA and other groups, writes Jonathan Boyd. These are in favour of ‘focused’ or ‘tailored’ advisers for dealing with lower income earners needing advice.
Speaking at the annual Tenet Group conference, Michael Folger, the FSA’s director for conduct of business standards, highlighted the issue and also said that the FSA was rethinking its proposals on defined payment schemes in the face of strong criticism in the responses it had received.
FSA officials have confirmed that more correspondence would be issued in the autumn. However, it intends to complete all discussions and lay out final plans by the end of the year.
Folger said the FSA believes depolarisation will be complete by the second half of 2003, so it will be at least another year before the new rules are in place. There are also likely to be calls from the FSA for the Government, in particular the Treasury, to take a more active role in finding a solution.
Folger said: ‘There are levers that only Government can pull in this sector. We need to work together to implement rule changes that make sense.’
Jonathan Boyd is senior reporter for IFAOnline