TISA to facilitate DIFs solution
TISA – Tax Incentivised Savings Association – is to seek a pan-industry solution to the issues surrounding Distributor-influenced funds (DIFs) that will ensure the right outcomes for consumers.
DIFs are set up by individual intermediary firms – financial advisers, stockbrokers and banks – in conjunction with product and fund providers with the distributor firm taking a more active role than in a wholly independent fund.
The FSA has already signalled its interest in the increasing use of DIFs and has expressed its concerns that firms using them should ensure that they are in the best interests of each client.
A TISA open meeting held last week highlighted that DIFs can provide better governance and more consistent outcomes for appropriate groups of consumers, as well as better financial value, if appropriately constructed.
However the meeting also acknowledged that issues around the perceived complexity, costs, transparency and suitability need to be addressed.
As a result, TISA is to hold a further meeting involving all the interested sectors of the industry to agree the next steps in the process to deliver an industry DIFs solution. It is anticipated that this will follow a similar model to TISA’s Re-registration project for wraps and platforms.
Malcolm Small, Director of Policy, TISA says:
“DIFs are now firmly in the regulatory spotlight but the industry has the opportunity to resolve the questions currently being asked and to provide solutions to the satisfaction of the regulator.
“We have experience at TISA of bringing the industry together on issues of mutual concern to agree on what needs to be done and the best way of doing it in the interests of both the consumer and providers/distributors.
“If we are able to develop a DIFs solution accepted by all, then this should avoid the need for any prescriptive regulation.”
Details of the next meeting will be announced by TISA shortly.
Ends……
For further information, please contact:Malcolm Small, Director of Policy, Mobile: 07989 500771 Email:malcolm.small@tisa.uk.com
Issued on behalf of TISA by Cauldron Consulting, contact Steve Radford – Tel: 020 3178 7238, Mobile: 07889 903786 Email: steve.radford@cauldron-consulting.com
Notes for Editors
The Tax Incentivised Savings Association (TISA)
TISA is the premier industry funded body in the UK retail savings and investment industry. By engaging with member firms, government, political parties, regulators and consumer groups TISA’s ultimate goal is always to further consumers’ best interests. It seeks to improve the range, features and quality of savings and investment schemes available whilst encouraging more people to save for their financial security and peace of mind.
Uniquely, TISA is able to articulate the opinions of the whole savings and investments marketplace through its membership comprising over 120 member firms involved in the supply or distribution of products. TISA’s remit extends across the broad spectrum of government sponsored savings and investment vehicles.