Industry groups gear up for new talks

The prospect of a single co-regulatory body representing insurance and investment advisers is once again on the agenda after the four major industry groups agreed to new talks this week.

Wednesday, May 30th 2007, 6:59AM

by David Chaplin

In April the Institute of Financial Advisers (IFA) pulled out of negotiations with the three other industry groups - the Society of Independent Financial Advisers (SIFA), the Life Brokers Association (LBA) and the Professional Advisors Association (PAA) - to establish a joint Approved Professional Body (APB), the co-regulatory entity that would be necessary under the proposed adviser legislation.

However, in an email to members sent on Monday Simon Hassan, IFA president, said members of the so-called G4 had struck up constructive dialogue at last week’s LBA conference in the Bay of Islands.

“We are very pleased that these discussions led to a recommitment to the G4 process, and agreement to set up a joint working party to examine how we can achieve pan body coverage for all G4 members,” Hassan said. “The aim is to have the joint working party in place by the end of June, and we hope to be able to report real progress in the months that follow.”

In the statement he said after ongoing talks with government and the industry the IFA moved beyond the ‘minimalist’ conception of what an APB should be. Under the IFA model an APB’s ambit would include compliance with local and international best practice standards and developing higher education pathways for members as well as statutory duties.

When the talks broke down in April, the PAA, LBA and SIFA mapped out a stripped-down version of an APB that they said in a statement would offer an independent and inexpensive licensing body for advisers.

“We believe that an APB must be independent of any adviser association and should restrict itself solely to the statutory standards and other requirements that will be incorporated in legislation,” the three groups said at the time.

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