Bringing you live news and features since 2006 

APFA welcomes Financial Advice Market Review

RELATED TOPICS​

The Association of Professional Financial Advisers (APFA) has provided an initial response to the joint HM Treasury and FCA Review into the Financial Advice Market (FAMR).

APFA welcomes the recognition that part of the problem includes regulatory costs imposed on financial advisers and the impact of the regulatory framework, the Financial Services Ombudsman (FOS) and the Financial Services Compensation Scheme (FSCS). 
 
APFA’s paper focuses on ways to reduce the cost of giving advice: first by addressing the problem of liabilities faced by financial advice firms and the cost this involves and secondly by reducing the cost of regulation.
 
Chris Hannant (pictured), Director General of APFA, says: ‘I am pleased to see that the points we have been making are been listened to as the options being considered include a longstop and reducing the cost of providing advice. 
 
“A driving factor for the focus on ever higher net worth individuals has been the rising cost of being in the advice business, so part of the solution must be to reduce the cost of giving advice. The growth of a compensation culture has led to a considerable impact on advice firms with the cumulative effect of FOS compensation, FSCS levies and professional indemnity insurance. These costs not only are passed on to consumers, but also prevent firms from investing in greater capacity, expanding and innovating. A balanced and comprehensive safety net needs to be designed involving the introduction of a longstop and reform of the FOS and FSCS. 
 
“We welcome this Review. It is an opportunity to put right some of the problems with the regulatory framework that will allow advisers to fulfil the need for financial advice and for the profession to grow.”

Latest News

ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..
Investors urgently need greater access to diversified investment strategies aligned with the Paris Agreement on climate change if the world..

Related Articles

Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Ed Rosenberg, Texas Capital
Texas Capital Bank first opened its doors back in December 1998 and nowadays offers wealth-management services, as well as commercial,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by