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The FSA has claimed it is successfully changing the behaviour of small firms and is on target to double the number delivering fair outcomes to customers.
In its latest business plan, the regulator reviews its Assessment Programme which, by the end of the summer, will have directly assessed 6,600 retail intermediaries and 200 retail asset management firms through face-to-face and telephone-based assessments.
It says: "At the end of the programme, we will be able to demonstrate clearly and measurably, that our direct engagement has changed small firms' behaviours in a real and sustained way."
The FSA says, at the beginning of the programme, only 40% of small retail intermediaries were able to demonstrate they consistently delivered fair outcomes to their customers.
It now says it is on target to double that figure to 80%.
The FSA also confirms it will adopt a new proactive, risk-based supervisory approach after the completion of the Assessment Programme, including roadshows, assessments and follow-up visits.
Meanwhile, the regulator has confirmed its Annual Funding Requirement (AFR) for 2011/12 is £500.5m, more than 10% up on last year's £454.7m figure.
The increase will be borne by larger firms, it says, reflecting the recently increased resources applied to intensive supervision of what it calls 'high impact' firms.
However, it adds the enforcement fines the FSA imposed during the previous year are returned to the industry by way of discounts to their fees in the following year, meaning that, in total, firms will pay 2% less than last year.
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| Comment | FSA: Our small firms supervision is working |
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At what price?
For the 40% that were already treating their customers fairly it has come at a one hell of a price. Regulating at the lowest common denominator fails to reward those firms with strong and rigorous controls and pushes up the cost of advice to consumers.
Posted by: Sam Caunt
NO Comment
An 86 page document full of bull to what cost ? To show that bulling works ? I dont think so spin spin and more spin to justify their jobs
Posted by: DH
Read between the lines
This report does not state that it has improved the outcome for a single client. It simply states more advisers can now demonstrate a good outcome. Before the FSA initiated all of this expensive work it may have been that 100% of clients were achieving a good outcome, but advisers could not prove it, now lots of advisers have implemented a robust process that has increased costs to demonstrate that what they were already doing provided a good outcome for the client.
Posted by: Heat keeper
Ofcourse it does
However, supervision is based on policy and there is the problem, for good cost effective policy in support of the industry and investing public, find no bed on the gravytrain.
Posted by: M J Winfield
*@*@@*!+
"changing the behaviour of small firms" What a load of sh**t. The only behaviour they are changing is more paper trails, more boxticking, more cost to advisers and clients.The outcome is still the same. Advisers, "in the round" treat their customers fairly. Is that enough for the lunatics running the asylum? No you must write a thesis on how you are doing that so that some little git straight from uni with a degree in media studies can be sure you are adhering to all the bullsh*t garbage they can dream up going forward, whilst scoffing £638000 worth of biscuits and contemplating their big fat bonus for job well done. Why not operate a no fly zone over canary wharf and save us all from this never ending spin. The fsa could make alistair campbell blush. OK maybe not.
Posted by: anonymous
Good job boys
Whilst it may be going against the grain here I feel the FSA have been doing a good job in policing the largely wayward and unethical IFA community. The whole ethos of bringing in more control has meant a huge recruitment drive into the FSA of predominantly well qualified and intelligent graduates who are completely untarnished by previous financial services experience and able to bring a fresh approach to the problems they encounter. In addition the swelling of numbers in Canary Wharf has meant a huge increase in our business mainly on expense accounts which effectively backed by the government is the best kind. Long may the IFA community continue to suffer - roll on the next mis-selling scandal, more recruitment, another Bentley for me! (Christmas was pretty good too, what chances a big easter bash?) Thank you very much IFA's.
Posted by: Adam Chase (Chase corporate hospitality)
goose that killed the golden egg
But what of your future when the fsa have finally annhilated us Adam? After all they are hoping the rdr is the final solution.
Posted by: egg
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Nothings changes
No what the FSA has really found out is that small firms were doing a good job in the 1st place. They have to justify their pathetic non jobs, hence this article spinning the facts in their favour!
Posted by: Incompetent Regulators Awards Team