No 15 Year Long Stop for IFAs Says FCA

by | Mar 14, 2016

Share this article

At the end of today’s FCA statement regarding the Financial Advice Market Review (FAMR), came disappointing news for many IFAs with confirmation that there will be no provision for a 15-year long stop clause.

The FCA said: “After careful consideration of the evidence FAMR has concluded that relatively few complaints relate to advice given by independent financial advisers 15 years ago or more.  As a result FAMR has ruled out recommending a 15 year long stop as this would inappropriately limit protection for consumers on long-term products.”

IFAs have argued that such a stop-clause is necessary as not only do attitudes change over such a long period of time, but that regulators could also reach back and deem that actions, or products sold at certain times in the past, were inappropriate and thereby actionable.

Such a clause would have removed some degree of uncertainty for IFAs as regards their professional and personal commitments.

Share this article

Related articles

Trending articles