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The FSA wants to monitor complaints data for individual advisers throughout their careers, with information linked to Individual Reference Numbers.
However, complaints records for individual advisers will not be made public on the FSA's website.
It is proposing the new complaints data will be reported by firms on a regular and an ongoing basis from 2013.
Firms will provide information on an ongoing basis regarding their retail investment advisers when a complaint against an adviser employed by the firm involves a claim of more than £5,000.
It will also apply when an adviser is the subject of three complaints in any 12-month period (other than claims that have already been notified to the FSA).
The 12-month period restarts after each notification, the FSA said in today's consultation paper.
The FSA does not intend to ask for detailed information regarding the complaint and will only require a notification of the occurrence of problems.
According to the regulator, 5,490 firms will be affected by the proposals, the vast majority of which are small businesses with one to three investment advisers.
Small-sized firms make up 4,005 of those that will be affected, 37% of the total.
Medium-sized firms, with between four and 18 investment advisers, comprise 1,271 of the affected businesses. A further 199 large firms, with 19 or more investment advisers, will also come under the rules.
Alongside new complaints data from firms, the regulator said it expects accredited bodies to pass on to it information on the professional standards of the investment advisers who use their services, including complaints data.
From July 2011, firms will also need to alert the FSA to competence and ethics issues in relation to individual advisers.
In its March Policy Statement on the RDR, the FSA said collecting data would be "an important part" of its supervisory approach in the future.
The estimates the total industry costs of today's proposals will be a £7m one-off bill and £3m annual ongoing costs.
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Another Job Creation Scheme
Short of work at Canary Towers are they?
Posted by: Incompetent Regulators Awards Team
Times of Austerity
£7m and £3m and no doubt totally justifiable! It doesn't matter whether it's the individual or a firm, advisers will never create as much consumer detriment as the regulator.No endowment savings, no care bonds, no MPPI, no weekly accessible IB, no agents offering savings plans,life assurance,phi, buildings & contents, motor insurance,hundreds of thousands of careers lost as offices closed and staff pensions lost in the process but still they keep on interfering.
Posted by: Peter Taylor
good idea
It seems like a sound idea to me. It shouldn't cost much to set up, companies have the data already on each adviser and it'll help combat poor advisers who move around frequently to help cover the signs of their poor advice. Since they aren't publishing the data, I can't see any problem with any defamation of charactor.
Posted by: MarkG
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A half right is still a wrong
The idea of recording complaint data against the adviser and monitoring it is sensible, but it is an incomplete picture and could be deemed defamtion of charachter if the details of the complaint are not provided and teh right to defend oneself of the adviser is allowed. The article says "The FSA will not intend to ask for detailed information regarding the complaint and will only require a notification of the occurrence of any complaint." The banks have maintained complaint data against advisers since the early 1990's, but they log them based on the seller of the "product" and NOT based on the actual advice effor/professional negligence. I have only had 3 complaints in nearly 20 years as an adviser and only one of them was actually about me. The last was defended and rejected by my firm and did not proceed to the FOS (because the ex client was lying and we could prove it). The first two I did not find out about until 3 years after leaving my former employer (a bank) and BOTH were errors on the part of the bank and NOT me. The first was a disputed direct debit claim over a plan which was due to go on risk after I had moved on to my new employer and basically the bank didn't put a new adviser in place to liase with the client between underwriting and completion. That was THEIR error not mine and yet they logged it against teh "selling adviser", the second complaint was about a free standing AVC and being a tied adviser at the time, we had to follow set procedures with FSAVC, which I did in 1993, but when measure in 1999 against the FSAVC review, the bank decided to accept the complaint about THEIR policy on FSAVCs, which was NOT within my remit. Half information is VERY dangerous and the FSA need to ask for a full picture and get evidence from teh adviser as the employer may accept a complaint from a consumer for expediency, not becuase the adviser has done anything wrong and that record may prove detrimental to their future employement and needs to be factually correct and give a true, not false impression.
Posted by: Nameless