Small practitioners seek N2 clarity
With just two days left before the Financial Services Authority takes over as the UK's sole financial watchdog, small practitioners remained confused over how they are to be regulated.
The concern is so great that the Small Practitioners Association has asked the ICAEW to clarify the position at its annual general meeting tomorrow.
Under the new regime, the institute will act as a designated professional body to oversee those firms that advise clients on investment business but are not registered directly with the FSA.
These firms have typically advised privately owned limited companies in the past without the need for authorisation but are now unclear which areas of advice fall under the new regime.
The SPA’s chairman, Peter Mitchell, has told his members to register with the institute to protect their position, a move that could cost small firms up to Pounds 200 a year. The institute’s Peter Burton will be asked at the meeting to clarify whether certain areas of advice are in or out of the new regulatory system.
The SPA has drawn up a dozen situations where it believes firms might fall foul of the regulators.
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TS: Confusion and clarity at FSA
