18th November 2010

A date for the diary- 20th December 2010

As reported in July "Even before the lights dim at the FSA offices in London's Canary Wharf, another new regulatory body is now in incubation" and with it comes the news that Backbench MPs have now secured a full Parliamentary debate on the RDR and are awaiting a date confirmation.

Harriett Baldwin has called on IFAs to lobby their MPs asking that they get involved in this important debate. For IFAs strong, reasoned and united representation is needed to ensure that the voices of considerable experience have the attention of those involved in the RDR as well as helping carry the message forward in setting out the framework for the CPMA to operate within.

Money Marketing reported that Personal Finance Society chief executive Fay Goddard thinks IFAs are clutching at straws if they think the recent political interest in the retail distribution review will lead to it being watered down.

She said: "I feel this debate now is perhaps giving false expectations to people. I really do not see any reversal. The rules are in place."

In so many ways this is true, but never say never Fay. The quest for better standards and higher levels of qualification cannot be argued against but this should be balanced with experience, good regulatory history and recognition that even IFAs have "Human Rights".

It is sad to think that the very body who should represent the views of IFAs has not engaged fully with it's membership in the consultation and formation process, the same view could perhaps also be leveled at the Professional bodies too. This has led to a "dogs breakfast" of unchecked regulatory roughshod riding over IFA bodies in search a regulatory Holy Grail in the form of qualifications to cure all evils and at any cost.

I would however hope that the latest statements from AIFA's Andrew Strange are heralding a new dawn as this week the AIFA has urged the FSA to reconsider its 2012 deadline for the RDR or risk a £1.8 billion drop in consumer saving. They cite the danger that FSA's RDR qualification requirements, and in particular the 2012 deadline imposed for achieving them, may result in a significant number of IFAs leaving the industry, thus decreasing consumer access to advice.

Coffee smelt I think!!

The RDR is intent on creating "Professional" status for financial advisers yet in doing so it is applying conditions to achieving that status that no other Profession does. Doctors, dentists, lawyers, accountants, architects- the list could be lengthy, do not have to re-qualify to remain practicing their chosen profession because their professional body has raised the bar for new entrants. It does not stop individuals taking an initiative on their own to improve exam based professional qualifications and it is a given that new entrants have no choice.

What many older IFAs want is fairness, they want recognition for unblemished experience - "Grandfathering" as has happened in other professions and if the RDR debate secures only that it will be in the eyes of many "Job Done"!

We should also not forget that in March this year the FSA considered scrapping the retail distribution review at a board meeting but decided to push on with plans for fear of "losing face". That is according to Lansons director of regulatory consulting Richard Hobbs.

Regulation should not be pursued at any cost and in such a way, applied like a tattoo only to be regretted when the effect of the alcoholic induced stupor that fuelled its creation has gone away.

So, whilst we await the date for the debate, there is a date to put in your diary - it is 20th December. We have organised a morning session where the RDR will be the focus. So far we have secured the attendance of Harriett Baldwin MP and Mark Garnier MP for a Q&A session. In addition, Richard Hobbs has agreed to contribute and attend. As they say on all concert posters "Plus special guests".

To secure your place at this unique event, simply follow this link - http://www.panaceaadviser.com/main/p47

This is a FREE seminar and some elements will count toward CPD. The meeting, kindly hosted by M&G at their City office- Laurence Pountney Hill, London, EC4R 0HH.

This will be a VERY well attended event; spaces are limited to 100 and will be available on a first-come-first-served basis, so book your FREE place today.

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