Andrea Leadsom
Main Page: Andrea Leadsom (Conservative - South Northamptonshire)Department Debates - View all Andrea Leadsom's debates with the HM Treasury
Independent Financial Advisers
Andrea Leadsom Excerpts(13 years, 7 months ago)
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Harriett Baldwin
My hon. Friend raises an important point, and I will come to that.
The FSA has come up with proposals to address the issue. They are close to final, and the board is likely to take a decision in December. Under the current plans, the proposals will be implemented by the end of 2012. As they stand, the proposals are known as the retail distribution review. As colleagues have suggested, they raise real questions about the role of regulation and the laws of unintended, and indeed intended, consequences in terms of regulation.
Andrea Leadsom (South Northamptonshire) (Con)
Is it not also true that not only will there be a reduction in the number of IFAs, but many of those who have been in the industry for a long time, who are very experienced and who understand the market and customers very well, will unfortunately inadvertently fall foul of the regulations?
Harriett Baldwin
My hon. Friend, who is also a member of the Treasury Committee, makes an extremely important point, which I will mention in a moment.
The impact of the proposals has been brought to my attention by a range of independent financial advisers, who are also constituents. Acting independently of one another, they all came to see me in my advice surgeries. Under the RDR proposals, each IFA should pass a set of exams and then spend at least 35 hours per annum on continuous professional development. Hon. Members should note that the requirement is 35 hours and that 34 hours would not be acceptable. IFAs also need to obtain a statement of professional standing from an accredited body. Someone who, today, is a qualified and approved IFA but who does not meet those requirements by 31 December 2012, will no longer be able to practise his or her profession, despite many years’ experience.