MED officials pushed for extension of QFE rules
In advice to Parliament's Commerce Committee, MED officials supported the proposed extensions to the QFE regime to accommodate firms that operate as related entities, saying the original model was "too inflexible to accommodate certain legitimate business models." Still, the officials said the regulator would need adequate supervision powers.
The Committee ratified the decision when it made a recommendation to government, and the amendments to financial adviser regulation were passed in Parliament last week.
Officials stopped short of endorsing calls to allow advisers act as nominated representatives to more than one QFE, saying it would be unclear as to which entity would take responsibility for the person, especially when dealing with a complex product.
The advice allayed the committee's earlier misgivings about extending the QFE regime, when chair Lianne Dalziel aired her doubts about letting umbrella groups operate under the QFE banner.
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