Paul Stanfield, Feifa chief executive, said the body had many aims at launch, but assisting advisers deal with the increasingly complex web of rules imposed on their industry was high on the agenda.
“We are very keen to assist our members and prospective members in meeting, and staying ahead of, the changing and generally increasing, regulatory burdens that are now being seen, particularly in the EU,” said Stanfield.
He said there were no specific areas of regulation that were currently of significant concern. However, the introduction of EU’s Markets in Financial Instruments Directive (MiFID) two years ago was an example of the kind of area in which Feifa would seek to assist members’ compliance.
He said MiFID had posed a significant challenge to advisers because, though it was imposed from above as a general set of cross-border rules, the detail had been interpreted by individual regulators in different ways.
“So we can help firms not only understand the general principles but also how they impact differently in various countries.”
He added the association had rigorous membership criteria that focused on compliance procedures, appropriate levels of professional indemnity insurance and anti-money laundering checks.
In this respect, said Stanfield, Feifa insists upon advisers having either the appropriate regulatory status demanded by their jurisdictional regulator, or that they meet a minimum standard set down by Feifa – if its rules impose a greater level of compliance than their local regulator.
Other benefits of membership, according to Stanfield, would be access to exclusive products and better remuneration terms, training, legal and technical assistance and help with recruitment.
The trade body has five member firms at launch, operating across 10 countries, with some 50 advisers.
Feifa membership requirements (source: Feifa)
Regulatory Status – Members should be licensed and regulated within the jurisdiction/s that business is written, if such a framework exists. Where it does not, the below systems and approach will still potentially facilitate membership.
Professional Indemnity Insurance – Members should hold this cover, and at an appropriate level and with relevant scope in respect of their business structure and possible liabilities. Where potential Members have struggled to obtain such cover, which is not necessarily rare in the present economic environment, FEIFA will look to assist them in obtaining it.
Compliance – FEIFA will expect a Member to have internal controls and processes in line with its Regulator’s requirements or to an Association minimum requirement, if greater. With regards to Member’s relationships with clients, FEIFA’s criteria will include aspects such as the issuance of a Terms of Business and the use of a fact find in all cases, as well as an identifiable risk assessment process and evidence of regular reporting to clients thereafter. We will also expect to see appropriate anti-money laundering systems in place and evidence of ongoing training, to include product and company research and analysis. Where prospective Members have gaps in any of these areas, the Federation will be happy to assist them in creating systems and documentation.
Legal Status – FEIFA Members, whether they are individuals and/or companies are expected to have the necessary legal status and structure within both the jurisdiction/s that business is written and the location of the entity, if different.
Feifa member firms
Fraser Macklinlay: Cyprus
Blackden Financial: Switzerland
Imperius Asset Management: Republic of Ireland, Russia, Netherlands
Offshore Investment Brokers: Spain
Spectrum IFA Group: Advisers in France, Portugal, Spain, Luxembourg, Netherlands, Switzerland
