AIFA concern over time and cost implications of data reporting rules
The Association of Independent Financial Advisers (AIFA) has today published its response to the Financial Services Authority's consultation paper on Data Collection.
This follows the formation of a working group of members and external parties to consider the proposals and the implications for firms.
AIFA is calling on FSA to demonstrate the practical application of the data required from firms, and consider the cost of its collection. AIFA has also warned the regulator about the danger of allocating complaints to specific advisers.
Andrew Strange, Director of Policy at AIFA, said:
"Our member working group has raised serious concerns about the cost and time implications of the reporting proposals for firms. While it is understood that the regulator needs access to relevant information, the data must be collected in a cost effective manner and only when it will actually be used. The cost of the RDR as an overall programme was set out some time ago and it is clear that continuing to add separate costs of implementation breaches the original cost benefit analysis upon which the consultation was based.
"The FSA should reconsider the time-scales for collection of data relating to adviser and consultancy charging. Our own work indicates some ambiguity from firms over the rules around adviser and consultancy charging, particularly when combined with the lack of final rules on areas such as legacy business and platform service operators.
"We are also concerned about FSA's intention to require firms to ‘allocate' complaints to a specific adviser and call on the regulator to clarify the intentions and impact of this. We believe the market impact has not been appropriately considered and that there may be human rights implications due to the lack of appeal mechanisms available to advisers within former firms. The FSA has not allowed sufficient time for the industry to consider this issue. Two months is insufficient for the industry. We urgently need further consideration and consultation on the issues we have highlighted."
AIFA's full response is available here:
www.aifa.net/your-industry/our-response.php
The original consultation from FSA is available here:
www.fsa.gov.uk/pubs/cp/cp11_08.pdf
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