Aifa invites members to join long-stop campaign group

The Association of Independent Financial Advisers (Aifa) has launched a working group to campaigning for the application of a Statute of Limitations for the IFA profession. 

The Statute of Limitations provides legal certainty for firms regarding the time limit within which complaints can be raised and, according to Aifa, applies to all other industries outside the financial services. 

Chris Cummings (pictured), director general of Aifa, said a core element of the trade body’s response to the retail distribution review (RDR) was its campaign to have the Statute of Limitations apply to the sector. 

‘We are within sight of a general election and around 300 new MPs will be elected to Westminster next year. This will provide a brand new opportunity to address this issue as the political backdrop will have changed markedly, regardless of which party forms the next government,’ he said.

He said research had shown consumers would be in favour of implementing the long-stop and putting one in place would strengthen financial understanding.  

‘It is our view that a clearer understanding of the rights and responsibilities of firms and consumers will actually help meet today's financial capability agenda. Consumer research undertaken by Aifa as part of the RDR showed strong support from consumers to have the Statute of Limitations applied to the IFA profession,' said Cummings. 

'IFAs should not be penalised because consumers do not trust banks and want to keep them responsible for their actions. Regulatory actions should be able to differentiate between markedly different sectors.’

Aifa members have been invited to join the working party, and those who become involved will be tasked with developing a campaign plan and meeting with politicians, the FSA, the Financial Ombudsman Service and major consumer groups.