Free network firms | Opinion | Money Marketing
Nic, you need to read up on the Appointed Representatives Regulations 2001, an almost carbon copy of the 1986 version, it is a fact that ARs are exempt from regulation because they are contracted to introduce business to an IFA which has elected to become a network in order to accept these introductions for which they pay a split of commission, or take a split of fees, these are the regulations, not my imagination. Some people might argue that this is anti-competitive. Another fact is that the networks dominate the Council of AIFA which unfortunately results in the representatives of real IFAs being unable to get a word in edgeways.
As the network is the regulated firm (IFA) it is only allowed the specified number of ‘free’ FOS thingy’s. Until the legislation is changed you are wasting your breath, in fact I wonder why you have brought this long standing situation up in the first place, surely there are more important things to write about.
My worry is that many network ARs will be caught in the same net as the Park Row people and others if, or more likely when, the FSA demands a ‘skilled person’ examines the files the network has already deemed to be acceptable.
Should these IFAs go for direct FSA authorisation before they are ‘banned’ for life by these ‘skilled person’ reports which are based on what is deemed suitable advice relating to charges alone? Should they passport in from another EU state (not a panacea), or should they follow the lead of the CFEB?
Even if they survive the RDR an IFA smaller than mid cap is unlikely to survive the EU regulatory jackboots which will follow some years later, this includes all intermediaries whether they be in mortgages, insurance or even stock broking.
The regulated need one representative body, not the dozens that are out there plying their trade and getting nowhere, has Chris Cummings moved to the largest iceberg still afloat just in time?
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