APFA calls on adviser community to lobby MPs over guidance guarantee levy
14 October 2014
The Association of Professional Financial Advisers (APFA) is calling on financial advisers to write to their MPs over the levy for the Retirement Guidance Service. APFA argues plans for funding the Guidance Service must not increase the cost of advice to consumers by allocating disproportionate costs on financial advisers.
The Guidance Service will be paid for by an annual levy on the financial services industry, with HM Treasury setting the amount required and the FCA responsible for how it will be allocated across the industry.
APFA has opposed the allocation of costs in a response to an FCA consultation on the guidance guarantee levy. The FCA’s current proposals could allocate up to 30% of the total cost to financial advisers.
Chris Hannant, Director General of APFA, said:
“We’re holding in-depth discussions with the FCA over the allocation of the levy as we believe that the current proposals will impose a disproportionate cost on the financial advice profession and increase the cost to the consumer as a result. This undermines the aim of the guidance guarantee at a time when the government is encouraging people to seek help and advice with their retirement planning.
“Ultimately parliament will decide what powers the FCA should have to raise this levy. We’re therefore calling on members to write to their MPs to explain how regulatory costs affect their business, and asking that the legislation include a requirement that the guidance guarantee levy is allocated in such a way that it does not increase the cost of advice to consumers. It’s vital that regulated advice is made affordable for consumers and is available for those who need it.”
APFA is making its call for members to write to their MP in addition to raising their concerns with Ministers and MPs sitting on the committee that will be scrutinising the bill.
A copy of APFA’s call to action is available here.
ENDS
