There is much discussion and conjecture about the final look of the financial services landscape post-Retail Distribution Review. There is a sector within the RDR proposals that may have been overlooked or dumbed down; the Recognised Professional Body (RPB) advisers.
Many of these practices, attached to solicitors and accountants’ practices are often run by themselves and whilst overseen by a partner, they may not be fully aware of the changes planned and the FSA regulatory compliance requirements that are impacted by these changes.
In CP10/14 Delivering the RDR: Professionalism, the FSA states that it is worth noting that existing professional bodies operating in the retail investment advice sector and elsewhere, typically operate sanctioning regimes for their members. For current retail investment adviser professional bodies, these disciplinary regimes are not assessing compliance with the FSA’s regulatory requirements, but with the professional body’s own standards.
By implementing the new “Statement of Professional Standing” (SPS) by accredited bodies for advisers in the future, it would be reasonable that these bodies will have disciplinary measures that involve a range of sanctions. Included in this range would be the withdrawal of the SPS and notification to their firm that this is the case. Under Principle 11, the firm would then be obliged to inform the FSA as this would impact on the rules for Approved Persons under FIT.
Email rdr@FSAregulatoryCompliance.co.uk to get your firm compliant.
The FSA are introducing a requirement for firms to ensure that their advisers provide documentary evidence of verification. They believe that the potential threat of the body withdrawing such evidence would be an effective deterrent against non-compliance with requirements. This will only be effective if the RPBs are up to speed with the RDR implementations and this element does not get overlooked or considered irrelevant. There is a risk that the FSA rules are ignored as RPBs consider their own professional body as the overseers instead of their own firm’s responsibility.
FSA regulatory compliance requirements are in a huge state of change, like white water rapids, and it is always best to ensure you have grasped the entire impact on your distribution model whether an RPB, IFA, stockbroker or Friendly Society. Contact CEI Compliance for a FSA Regulatory Compliance Health-check and evaluation before you are put under the spotlight. Call 07092 289901 or email rdr@ceicompliance.co.uk TODAY!
The link to CP10/14 is here
