IFAs urged to respond to RDR - PI for IFAs

20/02/2009

Following the implications it has on Professional Indemnity (PI) insurance among other areas, independent financial advisers (IFAs) are being called upon to offer their views on the Financial Services Authority's retail distribution review (RDR).

As it prepares to submit a formal response to the FSA's Prudential Rules for Personal Investment Firms consultation by March 31st, the Association of IFAs (Aifa) is calling on advisers to put forward their views on the review.

One particular point IFAs may be interested in is proposals by the authority to increase regulatory capital for all advisers, Financial Adviser reports.

And while capital adequacy requirement for sole practitioners could double to £20,000, the association suggests larger IFAs may face even more costs.

Andrew Strange, director of policy for Aifa, points out that although there are numerous discussions regarding the finer details of the RDR ahead of June "we must remember that the prudential rules consultation is very much alive and due for final responses by the end of March".

Meanwhile, Barclays Global Investors recently claimed that the RDR may benefit IFAs as it could fuel demand for exchange-traded funds.

Presently despite the review will not introduce a 15-year deadline that could have reduced the number of PI claims being filed against advisers.

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PYV are one of the UK's leading providers of professional indemnity insurance. This news article has been produced by Adfero in collaboration with PYV and its unauthorised use is not permitted.

(c) 2008 Adfero Ltd.

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