What causes difficulties in Conveyancing at the beginning?
I am pleased to say that in 2001, AIFA was instrumental in overturning a proposal for a new definition of independent investment advice under the Investment Services Directive. This would have restricted cross-border activity to those IFAs whose only source of income is fees paid by clients. The reason for doing this is so that we can help build an effective trade body, which will represent mortgage intermediaries. This sector urgently needs representation to Government and the FSA on the formulation of policies and rules for the industry.
NAMBA asked AIFA to become involved because it also wishes to draw on AIFA’s direct experience of setting up a trade association which represents intermediaries. Conveyancing Course I have to say that it is rather flattering to be copied in this way and suggests that we must be doing something right! It also makes sense for AIFA to be involved in this area since it is so closely linked to many of our members’ activities.
We are exploring the possibility of sharing resources such as our premises, but this would have to make economic and administrative sense for both parties. Since the PIA had been running down its reserves and it had not raised the costs of fees for a considerable period of time, an increase in fees when the FSA became operational was therefore inevitable. AIFA has done its best to ensure that the level of these increases has been reduced by working hard, on behalf of IFAs, to continue the cross-subsidies which existed under the previous regime.
After many months of negotiation, we were pleased to report in June that ILOG (the IFA Life Offices Group) will continue their financial support of IFAs by providing an 85% subsidy of IFA contributions to the Financial Services Compensation Scheme. We believe this to be a significant achievement which will benefit the IFA community. This demonstrates very positive support for the IFA distribution channel at a difficult time for both IFAs and providers.