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The TSC has attacked the FSA for failing to take into account age and length of service in its RDR proposals and called for a special package for older advisers.
Giving evidence to a Treasury Select Committee session on RDR, FSA chief executive Hector Sants and director of conduct Sheila Nicoll were unable to provide figures on the ages of the majority of advisers for MPs.
MP George Mudie suggested it would make sense to create a special 'package' for over-60s, who would have to spend considerable amounts of money on qualifications which will only be useful to them for a few years.
This could include some form of grandfathering and extra supervision from the FSA which could lead to extra costs for firms but would prevent them leaving the industry.
However, the FSA has once again reiterated its opposition to any grandfathering and told MPS advisers have plenty of time to work towards their qualifications.
Sants underlined his point that anything other than a level playing field would be unfair.
He says he understands why some individuals think the RDR is an "unreasonable initiative" but says the FSA has to evaluate the situation "in the round", Sants asks.
Sants says many advisers are working with the model they are suggesting and entrepreneurial IFAs can prosper in the new world.
However, he accepted there are "personal lifestyle reasons" why advisers may not want to adapt to this model and will leave the industry.
Sheila Nicoll was also keen to demonstrate the opportunities advisers have already had to work towards level 4.
She said: "We have been conscious of the need to give advisers time to gain the necessary qualifications and they have known for four years the requirements.
"We feel we have been reasonable in giving plenty of time for the deadline."
The TSC collected 203 submissions on the RDR from IFAs, providers and trade bodies, with many respondents expressing concern over the lack of grandfathering.
In its submission, the regulator said it had ruled out grandfathering partly as the majority of respondents, including AIFA and other adviser representative bodies, were against the proposals.
"We considered grandfathering but the majority of respondents to our consultation were not in favour (including AIFA, the main representative body for independent financial advisers)," it said.
"Any grandfathering provision would have to be made available to all advisers operating in the market, irrespective of who they work for."
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Sants should lead by example and take the examintions him self
I think Sants should lead by example. Let him take all the examinations first! Thats what I call practising what you preach! He might be a smooth talker, and have the gift of the GAB! But lets see if see if he could do it?
Posted by: Scarlet Pimpernel
Sants & Nicoll
I wasted two hours of my time, watching Sants try and charm the TSC. Obviously he is not in charge as he constantly nervously looked for Nicoll to bale him out, all she could do was sit hiding behind her hands smurking to which she felt the wrath of one of the panelists. It was nice to witness the people who our futures rest on at first hand! Not impresssed was my opinion!
Posted by: Mike
31 Dec OK; 01 Jan nogo!
The bulk of our business is arranging and advicing on Group Stakeholder Pensions. On 31st Dec 2012 I can give advice to new and existing members and on the 1st January 2013 I will be banned! After 23 years experience that seems unfair to me and to the 100's of my clients. I do not want to stop and trust there will be common sense prevailing to resolve this situation.
Posted by: Chris C
Not Even a Glimmer of Hope
I watched the TSC struggle to lever even a hint of a re-think from Sants. He wriggled and wriggled and hinted and obfuscated. The key question was "Is this final" and the only unequivocal answer all afternooon was a resounding YES - even if he tried not to say it. Sadly the committee missed an opportunity. They should have pointed out that it is these elder statesmen that are going to be hit with multiple whammies. 1) Driven from their profession 2) Liable until death for ancient complaints 3) No FSA information or updates after de-authorisation 4) No Pension - because they have taken trail instead of initial over the years to build a business which is to be destroyed. 5) No hope of holding on until European Regulation overrides the FSA and comes to the rescue. I have to ask - Why the unseemly rush? How about allowing Grandfathering for those with over 25 years of reputable trading, who are over the age of 60 and only UNTIL the European Regulations are finalised. Or is Sants desperate to get us out before his teeth are withdrawn? The clear problem is that the FSA do not want to lose face. They have set out their stall and know that no-one can make a jot of difference. Their approach tro the TSC was ignorant and insulting. Members of the committee who tried to extricate some logic from Sants were treated like a nuisance mosquito - not ignored but batted away and finally crushed. No - sadly the headline here is incorrect - The FSA will make no change. There isn't even a glimmer of hope!
Posted by: Grosvenor
age discrimination
Is it not illegal to discriminate on the grounds of age? Why should the old have more time to take their exams or watered-down thresholds? Surely - since experience & knowledge increase with age - these older advisers (you know the ones; 'I have been in the business since the fall of Mafeking') should be the most able to pass any exam since they have the most experience?
Posted by: Soren Kierkegaard
walk in my shoes
Soren Kierkegaard The point was made by george Mudie mp that it was a bit silly asking anyone over 60 to sit expensive, time consuming exams when they will probably retire within the next 5 years or less. It is very unfair as they will be unable to recoup their expenditure. It may not be an option to retire early as state pension is not available until age 65. I hope when you are 62 or 63 sorensen you are not asked to jump through hoops to keep the job you have done most of your working life whilst perhaps looking after elderly parents and a terminally ill wife. All the best.
Posted by: rdrd uptohere
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We have listened
must have been the only point on which they listened to aifa
Posted by: lol