IFAs 'optimistic' despite professional negligence crackdowns

Published on 25 May 2010 under category: legal

More than half (61 per cent) of individual financial advisors (IFAs) in the UK are feeling confident about the new coalition government, according to new research.

The report from Sun Life Canada has found that while the overall response is positive, less than 40per cent feel reassured when it comes to regulation and enforcement.

IFA networks have come under increasing scrutiny from the Financial Services Authority, which has focused on limiting professional negligence and improving customer standards in the industry.

A separate review from the FSA found this week that only 17 out of 42 IFA firms visited by the watchdog had effective systems for monitoring suspicious activity.

Other findings from the report show pessimism about the potential taxation of the industry.

Mark Stopard, head of marketing at Sun Life Financial of Canada, said: "When we drilled down to measure how the coalition would deliver on specific areas, views were more divided.

"To see such support on regulation and enforcement at this early stage is particularly pleasing and arguably taxation will always be a hot topic for any new government."

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