Advisers should ensure they apply early if they want to be recognised as autho- rised principals un...
Advisers should ensure they apply early if they want to be recognised as autho- rised principals under Financial Services Authority (FSA) regulation in 2005.
Speaking at the COVER Protection Forum, Nick Kirwan, head of protection and product development at Scottish Prov- ident warned advisers that getting in early is imperative if they want to ensure they can continue to work under the new legislation.
Kirwan estimated that approximately 32,000 firms will apply for authorisation under the FSA and hinted that the sheer number of applicants could lead to a backlog in the process.
In particular, Kirwan stressed that the need to comply with the regulatory regime before applying would inevitably bring the date of regulation much nearer.
"I do not believe that you will be able to apply unless you already comply. That brings the date much sooner as you will have to implicate changes before applying. Therefore, it is important to apply early to avoid disappointment," he said.
Delegates were further encouraged to apply early in order to benefit from the reduced application fees offered to early and online applications.
Kirwan also urged advisers to consider the service proposition they want to offer their clients when making their decision, stressing the importance of ensuring they are fully compliant before the legislation comes into force.
"For those of you who offer investment products already, it will be a marginal effort to be regulated for the others," he said.
"Essentially, you have one in four choices. If you do not become an authorised principal or an appointed representative, then you have to cease trading or commit a criminal offence."
