New AIFA member to fight 'ritual dance' of reauthorisation

A new member of the AIFA council has pledged to fight the need for advisers to get reauthorisation when changing firms.

Neil Liversidge, managing director of West Riding Personal Financial Solutions, was voted to the governing council at AIFA's AGM on Tuesday.

At the top of his agenda will be to seek changes to the current system which requires advisers to seek fresh authorisation from the FSA when they move firms, an issue that has led to long delays for former Park Row advisers looking to move on.

Liversidge says: "In what other areas of life can someone put your life on hold for 12 months?

"If, as a doctor, you change practices you are not subject to reauthorisation. The same applies to accountants and solicitors, who the FSA want us to be like.

"Only IFAs have to go through this ritual dance of reauthorisation which serves no other purpose but to employ people in Canary Wharf."

Liversidge, who has been in financial services for 30 years, also says he will battle against what he believes are the "near-fraudulent activities" of claims management companies.

He adds: "These people incite complains from otherwise happy clients for their own financial gain and they use the apparatus of the FOS which we pay for.

"In any other civil claim the company would have to take the risk of funding the cost of a court case.

"Because of the FOS these people have no risk whatsoever when taking on IFA firms, so there is absolutely no check on them. That is insane."

Instead, he would like to see the claims management companies contribute towards the FOS fee when they put a claim in.

Liversidge has previously brought attention to regulatory failings by submitting a petition to Number 10 Downing Street calling for the Prime Minister to "exercise proper control over the senior management of the Financial Services Authority".

The petition attracted more than 2,700 signatures and the government responded by outlining the changes being made to the regulatory architecture and the review of the banking industry.