8th April 2011
IFA Letter of the week
AN OPEN LETTER TO HECTOR SANTS - DOES THE EQUALITY BILL APPLY TO THE FSA?
Ageism is illegal in employment, training and education. The Equality Bill comes into force in 2012, making ageism unlawful in the provision of products and services where it has negative or harmful consequences. The Financial Services Authority (FSA) Retail Distribution Review (RDR) Level 4 Requirement threatens the livelihood of circa 20/30% of Independent Financial Advisers (IFAs) resulting in a negative & harmful consequences not only for those advisers but also to their soon to orphaned clients (consumers).
RDR Level 4 could be construed as "Indirect discrimination", under The Equality Bill which means having a policy or practice such as the Retail Distribution Review Level 4 requirement together with a refusal to allow grandfathering which places people (financial advisers) of a certain age group at a disadvantage compared with other people.
Recent study reveals that mental faculties starts to decline in later life. Therefore to apply a degree level 4 learning requirement to and industry whose average age is 54 (and to not permit grandfathering) could contravene age discrimination laws.
Other examples are given by this legislation such as a firm introduces a fitness test which all employees are required to pass. This could be indirect discrimination if fewer older employees are likely to be able to pass the test. Both direct and indirect discrimination are unlawful unless the discrimination can be justified.
RDR and old age
James Hay Wrap research shows: Average age of IFAs estimated at 54 (This is based on industry sources). The FSA's "Financial risk outlook 2007" estimated the average IFA age as 46. James Hay go on to say: Our own contacts with industry sources that put the average ages at 54, 55, 56, and 58 years
Question: Has the FSA taken legal opinion as to the compatibility of the Retail Distribution Review Level 4 Requalification Requirement with The Equality Bill which comes into force in 2012?
Regards
Simon Mansell
Comments (4)
Oh year that's right, that's your job too. You have to really take ownership of the fact that all your employees and their families are relying on you to use your 'inovation' to keep the business from going under.
Don't waste your time asking politicians for answers, they only care about collecting their salarys. It's trade that builds civilisation, always has been.
John Bull 04/05/2011 13:33
I would be keen to see if you are going anywhere with this Simon.
Brian Hammond 10/05/2011 10:49
Brian my resourses are limited and when these issues are passed on to MPs, their response is to act as postmen i.e. most merely write to the relevent minister who responds with the standard FSA templated pap and that is an end to the matter.
However, my hope is that anyone and everyone reading this will take this as if their own and in turn ask their own MP to take this up. At the very least we can affect the "collective conscience" (read up on Durkheim's concept). On this latter point perhaps this is really what we are able to do - we havethe power of the internet and we are able to change the views of those who rule us. This has already taken place with the TSC and our constant commentary is cumlative! So keep on and on even if it seems it is going nowhere.
Simon Mansell 17/05/2011 09:05
In which case you ought not to be dealing with clients at all. Our work is complex and technical and requires all ones faculties to be in good working order. This admission (which I don't necessarily agree with anyway) is a perfect argument FOR exams - in order that these poor geriatrics can prove they still have the mental capacity to do a half decent job.
Personally, as I have said, I believe this to be tripe. Many global leaders are well past 60 and it is only the modern obsession with youth that forgets than in years gone by many of the great leaders were still working past 75. (Churchill, Gladstone, Bismark, Adenauer etc.). Many captains of industry too - Sigmund Warburg was still active in his 90's, George Soros and Warren Buffet won't see 60 again.
In a more modest way I am among many who took and passed exams well past 55.
Come on Simon I dont know how old you are, but are you trying to tell me that when you reach 55 youll be past it?
Harry Katz 17/05/2011 09:07
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