30th March 2011

PanaceaIFA- Exclusive-Written interview with Stephen Gay- your questions

Stephen Gay, Director General AIFA, has kindly agreed to an exclusive written interview with Panacea. This should be published in the next week or so. Many thanks to all those who sent in questions, the response was amazing and in light of this weeks admission by Robert Sinclair that “AIFA has let advisers down”, we all look forward to reading his interview responses. The questions asked are:

 IFA Representation

1.    You claim to represent the views of your members. How many members of AIFA are the result of block Network membership rather than individual membership?

2.    Who Funds AIFA and in what proportions- Networks, DA IFAs, Sponsors, Providers, Lenders, ABI, Commercial activity?

3.    When the overwhelming majority of advisers receive their remuneration by commission why has the AIFA council actively supported the commission ban?

4.    I am a long-standing member of AIFA who used to attend local meetings organised by a local Director of AIFA, which at least gave a forum for local views in the West Midlands. These no longer take place as far as I am aware although Dinners have been organised and sponsored by various Product providers and Fund Management Groups. Who represents us locally and how have our views been canvassed on RDR?

5.    How many of the AIFA Council, actively employed in the business, run firms that are predominantly or totally fee based and how many of the Council are in favour of the fee approach?

 Transparency

6.    Why does the Council wish to keep their discussions and those of the Working Groups confidential from members? Surely the workings of AIFA should be fully transparent to it’s membership?

7.    The TSC believe that Banks and Providers say one thing in public and another in private about the RDR, in your role as Director General of AIFA is this your experience too?

TSC Submission

8.    Why have AIFA never done a survey of their members views on the RDR. With technology enabling views to canvassed quickly and at very low cost, is not the only democratic way to email survey all AIFA Members and ask their views?

9.    There were almost two months between the TSC enquiry being announced and the last date for submissions. Why did the AIFA RDR Working Group not meet during that period to consider the submission and only have a last minute telephone conference as a result of pressure from members?

10. The TSC suggested that AIFA may have been intimidated by the FSA and asked if AIFA wanted to give evidence in private, did this happen?

11. In your view, are the statistics given by the FSA to the TSC to support their actions and intentions akin to a simple game of “Find the Lady”?

12. Solicitors and accountants do not effect and arrange product sales. If professional fee based status is the RDR aim for IFAs, should post RDR fee based advisers be banned from arranging product transactions, leaving this to an independent third party?

Grandfathering

13. You held the view that Grandfathering was not an idea you supported prior to joining AIFA. What evidence do you have to support the view that the AIFA stance on grandfathering reflects the views of grass roots members rather than just your own and those of the various committee members?

14. How will AIFA improve the consultation process between itself and its members to ensure that their views are sought and are more fairly represented in the future?

15. Do you believe RDR is a good thing and a change for the better for advisers in and why?

Post RDR

It is predicted by the FSA there will be thousands less IFAs post RDR, if you agree with this estimate, then

16.Is AIFA planning to try and arrest the exodus of IFA firms, and members, likely to go out of business as a result and if so how?

17.What plans have AIFA made to adjust to a different looking financial advisory market and will be the role of AIFA post RDR change?

Yourself

18.What is your current greatest challenge as Director General of AIFA

19.What would you like to achieve most as Director General of AIFA?

20.After a successful career spent within a well-paid and supportive institution, do you have any regrets about taking on this difficult job?