SimplyBiz Challenges FCA on Advisers Share of Guidance Levy

Ken Davy, Chairman of the SimplyBiz Group, has responded to the FCA Consultative Paper CP14/11 and challenged the apportionment of the costs of the Guidance Guarantee being proposed for advisers.
 
The Consultation Paper proposes two options; the first would make advisers liable for 30% of the Levy and the second 20%.   A third option acknowledges the inherent unfairness of the first two options and seeks guidance on how a fairer system might work.
 
In an extract from the submission, Ken Davy says; “The benefit to advisers (from the Guidance Guarantee) is likely to be approximately £12.5m per year.  It is essential to note however that this is not a cumulative benefit.  For the other fee-blocks the benefit is c£39m a year on a cumulative basis. Therefore, within just 5 years the insurers and money managers will have received a total of approximately £549m compared to the advisers total of c£62m and be receiving an annual income 14 times greater than that of advisers.”   
 
Commenting on the FCA Paper, Ken Davy added; "The gap highlighted above and its inequality will continue to worsen year by year on a cumulative basis to the increasing disadvantage of advisers. We have seen with the Investors Compensation Scheme Levy, which continues to place a wholly unfair burden on advisers, how the unintended consequences of regulatory action can damage the sector.  We are also very concerned that the Guidance Levy is handing a blank cheque to the organisations tasked to deliver the guidance.   We are not against the Guidance Service itself; however it is vital that the costs are shared equitably and properly controlled.  Our detailed response to the FCA demonstrates that the adviser fee-block proportion should more properly be of the order of 6% or less rather than the 20% or 30% suggested".
 

Latest News

SimplyBiz Launch Training and Competence Scheme

  October 16, 2014

Read more >

360 Legal Group launch new compliance offering

  October 02, 2014

Read more >

SimplyBiz Challenges FCA on Advisers Share of Guidance Levy

  September 23, 2014

Read more >

Compliance First launches non-mainstream investment events

  September 16, 2014

Read more >

'); } else { //alert('here'); //alert('this record already exists'); } }); $('a.watchVideo').on('click', function(e){ //checkforMedia(); e.preventDefault(); //alert('hello there'); //var url = $(this).attr('href'); var url = $(this).attr('data-remote'); var txtSummary = $(this).attr('data-summary'); // Variables for iFrame code. Width and height from data attributes, else use default. var vidWidth = 512; // default var vidHeight = 295; // default if ( $(this).attr('data-width') ) { vidWidth = parseInt($(this).attr('data-width')); } if ( $(this).attr('data-height') ) { vidHeight = parseInt($(this).attr('data-height')); } var iFrameCode = ''; $(".modal-body").html(iFrameCode); //$(".modal-body").html(''); $(".modal-header").html(" 

"+$(this).attr('data-title')+"

"); $(".modal-footer").html(txtSummary); $('#mediaModal').modal('toggle').on('hide', function () { //$(this).removeData('modal'); //alert("tester"); $(this).remove(); // $(this).dialog('destroy').remove() //parent.frames['frameName']. }); //data-dismiss='modal' }); $('#mediaModal').on('hidden.bs.modal', function () { $('#mediaModal .modal-body').html(''); });