Monthly Archives: July 2015

What working method is to be obtained for getting accurate results in Conveyancing?

Following the closing date for comments on the document in April, it became clear that of the seven hundred who responded (including our own substantial submission on behalf of our 17,700 members) few (if any!) supported the introduction of a DPS. As a result, the FSA began to have a re-think. By the time of its AGM in July, FSA Chairman, Sir Howard Davies, said that a number of alternatives designed to achieve a similar objective to the DPS, had been put to them and that they were “… looking positively at those suggestions”. Conveyancing Solicitors The FSA’s movement on this issue clearly demonstrates that when the industry argues its case well, collective pressure can be very effective, particularly if it is backed up with a wellresearched, alternative proposition.

AIFA’s proposal for what we call the ‘menu option’ is one of the alternatives to the DPS, which the FSA is seriously considering. This would, in effect, be a menu of charges comprising of a single sheet of paper and containing an indication of the costs of an IFA’s services. It would also include information on the ranges of commission available in the market on various classes of product.

Not only would this meet the objective of giving consumers information about the cost of advice, but it would avoid the unnecessary prescription inherent in the DPS. It would make no judgement on whether fees or commission should be the preferred route for meeting those costs. A consumer would also be empowered by the menu if there were any concerns about potential product bias in a recommendation (whether justified or not, we know from research that some consumers do worry about this).

AIFA and IFA Promotion spent the summer months working together to work up the practicalities of the menu. We also included an analysis of some of the things that the FSA wanted us to address such as equivalence across all sectors. If the FSA decide that the menu option is the right approach, then AIFA would hope that an equivalent method of disclosure would be required for all types of advisers, not just those who are independent.