19 Feb, 2008
Published: 11:11 Tuesday 19 February
By: Tony Bonsignore, New Model Adviser News Reporter
Financial Services Authority today proposed a new 'safe harbour'
single disclosure document for advisers that would replace the menu
and the initial disclosure document (IDD).
The new document, detailed in a consultation paper issued today, is
likely to be introduced by August and will only be offered as
guidance, as the menu and IDD have been since November 2007.
However, those who do use it will be reassured by the FSA that it
represents best practice.
As well as merging all existing information into a single document,
the new form also drops the menu's controversial requirement to
include details of average industry costs.
The announcement that the menu and IDD were to be axed as
compulsory requirements was made in May last year - less than two
years after being introduced. The FSA said the move followed
consumer research that showed the documents were not benefiting
consumers as much as been hoped.
Dan Waters, FSA director of retail policy and themes, said the
regulator was emphasising principles-based rules and outcomes
rather than processes and procedures.
'This new document aims to provide key information in a more
streamlined way to help consumers better understand the services
offered by advisers,' Waters said. 'But, as guidance, it is
only one way for firms to comply with COBS disclosure requirements.
Firms will be free to develop their own disclosure documents to
provide effective and clear disclosure to their clients.'
The consultation period on the new document lasts until 19