A fairer FSCS levy scheme.
Most of you would have noticed recent and encouraging
comments from Financial Services Compensation Scheme (FSCS) chief
executive Mark Neale, who has called on the financial advice sector
to play a bigger role in helping to shape a fairer FSCS levy
Like many in the sector, Mr Neale has been a long-term
advocate of a risk-based levy, but has urged advisers to engage
with the consultation process if such a scheme is to be
Mr Neale's views will no doubt carry some weight during
the FCA's review of FSCS funding, and so I am delighted that he has
agreed to be interviewed for the next edition of Financial
Solutions magazine to share more insight and views. Keep an eye out
for the feature article when FS appears in the first week of
Like Mr Neale, I believe the financial advice sector has a
huge role to play in shaping a fairer FSCS funding system and many
of you will know that we raised the matter with the Chancellor last
July and subsequently proposed alternative funding methods in our
FAMR submission. Last week I met with the FCA and FSCS for a
pre-consultation meeting to discuss its review, and while I
acknowledge that many of you are sceptical about the timing and
likelihood of meaningful reform, there is definitely wide
recognition of the need to seek an alternative funding
Ahead of my first FAMR consultation meeting with the FCA
next week, I welcome any constructive feedback from members around
potential alternatives to the current funding mechanism. In my view
there are four options that should be considered, including a
product/investment levy, a pre-funded system and a risk-based or
pooled risk principal levy. I would encourage advisers to think
more about the long term consequences of their business models and
the ultimate benefit or impact on consumers.
Ultimately, the consultation process will determine the
most appropriate funding system and input from members, who operate
at the coalface each and every day, will help shape a desirable
Pent up demand for talent
As some of you may have seen in the press last week, the
Personal Finance Society's recent apprenticeship survey produced
some interesting and encouraging insights from members.
An overwhelming majority (97%) of respondents supported a
specialist apprenticeship for the advice sector while three
quarters said they would be interested in taking on an apprentice
if the new specialist programme is approved.
I want to extend my gratitude to all of you who responded
to the survey. The results will now be assessed and used during the
development phase, to help design an apprenticeship programme that
best meets the knowledge, skills and behavioural demands of the
The apprenticeship programme is due to go live in
mid-to-late summer following approval from the Department for
Business Innovation and Skills.
Engaging with our friends on the continent
As the Brexit debate continues to dominate headlines in
the lead up to June's referendum, the Personal Finance Society
continues to seek ways to maximise opportunities with our friends
on the continent.
Together with two practitioner members, I travelled to
Italy on May 5-6 to attend a financial planning think tank event
hosted by the European Financial Planning Association (EFPA), of
which we are an affiliate.
The event offered invaluable insight into current
developments across European advice markets and offered a platform
for us to present the positive progress the profession is making
here in the UK.
The meeting, and our ongoing association with EFPA, will help us
to investigate and develop cross-border opportunities for our
members across Europe.
About the Blog
In this blog Personal Finance Society CEO Keith Richards will be
keeping you up-to-date with all the Personal Finance Society news,
projects and initiatives that we have in the works.
Read past editions of the blog »