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IFAs feature heavily in FSA fines report
19 August 2010
The FSA has fined IFAs nearly £1m during this year, more than three times the sum the industry was billed last year. Figures released by Wolters Kluwer Financial Services under the Freedom of Information Act found that the FSA has already issued £62,716,697 worth of fines, with £941,500 directed at IFAs, during the first half of 2010. The sum is a massive jump from the £236,676 that IFAs coughed up to the City regulator in 2009. Last year, IFA fines amounted to just 0.7 per cent of the total penalties. But this has now spiked to 1.5 per cent of total issued in 2010 so far. Mary Stevens, regulatory editorial UK manger from Wolters Kluwer Financial Services, said: "Even though we are only part way through 2010 the fines percentage is well over double last years’ final total reflecting the FSA's increased pressure on IFAs as it gears up for the retail distribution review implementation." However, Gary Reynolds, director for Oxfordshire-based Courtiers, said he did not believe the spike was linked to the FSA taking a heavy handed approach towards the IFA community. He said: "I don’t think this increase is down to the FSA targeting IFAs or treating them unfairly – I think it's caused by advisers not keeping up with the constant regulation and legislation changes. "If IFAs are finding it hard now then they will struggle more when the RDR kicks in. IFA firms need to pull up their socks and make sure they comply with the law as things are only going to get tougher." The FSA refused to comment on the story. Published by FTAdviser
