Watchdog extends renumeration code to IFAs

The Financial Services Authority (FSA) last week announced plans to extend the scope of its remuneration code to include some financial advisers that are subject to the Markets in Financial Instruments Directive (Mifid).

The regulator says its new rules are required by the Capital Requirements Directive (CRD).

The directive, CRD3, will bring 2,500 firms within the scope of the code, including all banks and building societies, asset managers, hedge fund managers, Ucits investment firms and some firms that engage in corporate finance, venture capital, the provision of financial advice, and stockbrokers. (article continues below)

The FSA was unable to confirm how many IFAs will be affected. The consultation period closes on October 8. The FSA intends to issue a policy statement in November, with rules effective from January 1, 2011.