Paul Smee updates IFAs on the regulation issues affecting their businesses
Speaking at the Cover Forum in Manchester, Paul Smee, director general of AIFA, aired his views and updated IFAs on regulation issues affecting those in the protection market.
Informing IFAs that they would shortly be getting a letter from the Financial Services Authority (FSA) about changes in the way they are going to be monitoring regulation, Smee said the new system would be fairer and will look at ways to tackle problems before they arise.
He said: 'They have had a big reorganisation and I think there are some very good messages coming out of it.'
He added that the FSA is moving away from old-style monitoring visits, from inspectors that did not fully understand IFAs' business.
'There will be a new system based on getting information about your business and deciding whether there are any risks. Clearly if your business receives a lot of complaints, you will get a visit. But for most IFAs this is not the case. There will be a much more grown-up approach to regulation and a much greater focus on spotting problems before they arise,' he said.
Regarding the new investigation into the long-term savings products, headed by Ron Sandler, Smee warned that the review should resist the need for a complete overhaul and take into account both the fast moving changes in the industry and the increasing need for consumers to receive top class advice.
'Sandler will do a bad job if he tries to take a snap shot of an industry that is changing quickly and come up, in effect, with the answers to last year's problems. Legislation is always the answer to the problems of three years ago. These reviews can very often be the answer to last year's problems. He should bear in mind that we are in an industry where the professionalism and competence of advisers has been increasing and is continuing to increase.'
