Code Committee to get more power
At the moment, only authorised financial advisers are covered by the code, which dictates their client care and ethical obligations as well as CPD and qualification requirements.
Code committee chairman David Ireland said a big problem with the current regime was that the code only applied to a small number of advisers who were AFAs. RFAs and QFE advisers do not have to abide by the same rules.
"If you look back six years to when the act came in, the very small number of AFAs was not predicted at the time. Initially 20,000 was the figure talked about and then that narrowed to 5000, then it ended up at less than 2000. It meant the code was not really as effective as it could have been."
He said the proposed changes to the code would fix that, with no escape from it if someone was providing financial advice of any sort.
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