Private wealth managers split over upcoming regulatory changes

Private wealth management firms in the UK have split opinions over upcoming regulatory changes that are due to have a substantial effect on the industry.

According to the Financial Times, many firms are concerned that the new rules, which are due to be introduced in the next two years, are too wide-ranging.

However, others are more optimistic, stating that the changes being made by the Financial Services Authority (FSA) will provide ’a once-in-a-generation opportunity’ to secure new business in Britain’s mature market.

’There’s no doubt that we’re going through a period of industry consolidation,’ director-general of the Association of Independent Financial Advisers Chris Cummings told the news source.

The FSA estimates the cost of implementing the alterations - which will include changes to the way advisers can describe themselves - will be £1.7 billion.

And Mr Cummings said larger firms will have to bear their share of the costs.

Last month, research from the Confederation of British Industry and PricewaterhouseCoopers suggested the financial services sector is upbeat about its prospects over the second quarter of 2010.
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