Wealth management advisers subject to new regulation

The monetary services industry may be required to strengthen competency and demonstrate strong ethical behaviour if new guidelines from the Financial Services Authority (FSA) are accepted.

From private banking to charity investment management, any individual working as an approved financial adviser would be subject to stricter controls, devised with consumer protection in mind.

FSA proposals include a 30-month deadline for wealth management experts to gain all qualifications necessary to their role. Transitional provisions allowing advisers to operate without these credentials would also be removed.

Sheila Nicoll, FSA director of conduct policy, hopes the guidelines will protect consumers by strengthening ethical obligations to act in clients’ interests.

’We want to see firms operating robust training and competence schemes and individuals demonstrating good standards of ethical behaviour,’ she stated.

The Association of Independent Financial Advisers, commenting on the proposals, suggested more stringent regulation may have the adverse affect of restricting access to financial services. ADNFCR-2318-ID-19821029-ADNFCR