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Institute of Financial Planning (IFP) chief executive Nick Cann will tell MPs the increasing layers of regulation faced by financial advisers will not improve the public's access to advice when he appears in Parliament this week.
Along with AIFA director general Stephen Gay, Cann will give evidence before the Draft Financial Services Bill Joint Committee on Thursday on the regulatory overhaul which will see the Financial Services Authority replaced by the Financial Conduct Authority (FCA) and Prudential Regulatory Authority.
Cann said he was asked to appear only in the last few weeks, despite not submitting any answers to the committee's initial call for written evidence.
The IFP CEO said he will try to push his message about the impact of more regulation on financial advisers and consumers.
"One of the outcomes of going down the same regulatory path is that we're not going to improve the ability of the mass affluent to access financial advice because the regulatory gold plating is too great," said Cann.
"Are we protecting customers too much and do the regulators look at things from a help and innovation perspective or are they still trying to protect people by making it all too complex?
"If firms have done all this work for the retail distribution review and are better businesses and individuals as a result, we need a regulatory system that recognises that."
AIFA did submit a response to the committee earlier this year, in which it warned that "regulatory fatigue" was setting in, driving members of the
market out, "to the detriment of consumers".
It also reasserted its calls for a long stop to the action of the Financial Ombudsman Service and aired its concerns about European insurers passporting in wholly owned tied intermediary subsidiaries, bypassing FCA power over their product sets.
The committee will consider the evidence of Cann, Gay and all the other witnesses before producing a report on the Draft Financial Services Bill by 16 December, making recommendations to both houses.
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Regulatory fatigue?
@ Paul -- that's what you pay your fees for! He clearly has regulatory fatigue too
Posted by: Grosvenor
regulatory gold plating
I have been an IFA for 19 years. I have been Diploma qualified (and beyond) for 16 of those years. I have completed the necessary gap-filling. I have never had a complaint. I am not overly concerned about the abolition of commission. What I am beginning to detest is the bureaucracy and the form-filling, the 10 page reports when a 2 page letter would do, the micro-inspection of everything I do by people who wouldn't know a crook if he bit them on the ass (hence why the banks have gotten away with murder - figuratively speaking). I feel like I am employed by the State and that everything I do needs to be approved before I do it, as I do it and when I've done it. The goalposts are constantly moving and more and more bloodsucking quangocrats appear every day supposedly protecing the public but, actually achieving very little in this respect but costing them £billions. Soon it will be the turn of the Eurocrats sticking their noses in the UK financial services trough. More regulation, more costs, more uncertainty. Thank you FSA - I have decided to leave the industry.
Posted by: Bill Wells
Well said Bill Wells
I agree with you Bill. Similar situation with me. Sadly I doubt anyone will listen, they would look fools if they changed anything now and they can't be made to look like fools now can they, especially as they have a whole host of Eurocrats, MP's and others who think they can do no wrong or don't know any better? They have all been sucked in by the mistaken beleif this is good for the consumer without realising it's effect on the majority has probably been far worse for the consumer, or are we all really richer as a result? We have been shafted and will continue to be so as they just cannot see the whole picture or the mess they have left behind them so they just continue sailing on in the hope will ride it out. Regulation has been so successful, people are saving more and more and have debt don't they? Sadly it is the opposite as far as I can see. Everyone is encouraged to complain and blame it on others which is of course encouraged by the regulator !!. They have nurturered a society where you are encouraged to complain about anything and everything and it is never your own fault. Oh yes regulation has been really good for everyone, lets have more of it, so we have nothing left to regulate !!!!!
Posted by: Michael Fallas
Regulation or Decimation!
Spot on Bill Wells!!! Shame on you Hector Sants! When they write the Obit on the FSA in a few years, you just know everyone will look back in anger, with a tut and sigh and a shake of the head and say .. Why oh Why oh Why....were this lot allowed to do this.. I've heard the number of IFAs left post 2012 maybe as low as 10,000. How many were there when the FSA came to power in 1997? 300,000?! It' simply staggering... that's not regulation...that's decimation! Bill Wells and anyone else considering giving up.... before you leave, please, please email your comments to:- Your MP, mark.garnier.mp@parliament.uk treascom@parliament.uk, harriett@harriettbaldwin.com
Posted by: FemaleIFA
United we stand
Nick and Steve Go to it and tell it like it is. I wonder if they will take much notice. However I do wonder about the intentions of the committee. The IFP is a professional body. They didn’t submit any responses, they are in terms of overall numbers, quite small and in truth their constituency isn’t that different from AIFA. So one wonders (not in any detrimental sense) why the IFP were asked. My theory is that some bureaucrat thought it might be a good idea as the two representatives may contradict one another – allowing the committee to completely ignore both of them. So guys – solidarity please. Back each other up and present a firm and united face when you attend the Gasworks tomorrow. (Oh, and as far as I can see the CII/IFP yet again hasn’t been asked. If this is so then it does convey a pretty clear message).
Posted by: Harry Katz
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Disbelief !!
Why, when invited to submit answers to the committee's initial call for written evidence, were none forthcoming, from the CEO of the IFP? I feel a 'Victor Meldrew' coming on - 'I don't b****y beleeeeve it'.
Posted by: Paul