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.