1 January 2025 | IFA Bye-law and regulation changes: what you need to know

The IFA have undertaken a comprehensive review of the Bye-laws and Regulations. These changes will improve efficiency, reduce costs and strengthen the IFA’s reputation and are in effect as of 1 January 2025. The updated versions are available here: IFA Bye-laws and regulations. 

Key updates include:  

  • the IFA Bye-laws have been amended in parts;
  • the glossary has been updated to reflect those amendments; and 
  • some of the provisions of the Regulations have been amended andmoved to create a better flow and to incorporate a new ‘fixed penalty’ framework.  

The IFA Member Regulations, CPD Regulations, Public Practice Regulations, Articles and Code of Ethics remain unchanged. 

Bye-laws 

In this revision, the Bye-lawsnow include precision in the following areas: 

  • Fitness and propriety: additions to clarify the expectations of members regarding their conduct and their eligibility to remain a member.  
  • Fixed penalties: A new framework has been implemented for specific cases where the fixed penalties may be incurred for non-compliance. 
Disciplinary Regulations 

The IFA is introducing a fixed penalty framework which will be applied to cases that meet appropriate criteria allowing for swifter and more cost-effective resolution of disciplinary matters. Fixed penalties are on a consent basis, meaning members will have their disciplinary case referred to an independent committee if they do not agree that they are liable to disciplinary action. 

Key points include: 

  • Decisions to impart a fixed penalty are delegated to and will remain with the Regulatory Case Manager and the Disciplinary Case Manager. 
  • Non-acceptance of a fixed penalty will be considered by the Conduct Committees in accordance with the Regulations. 
  • The terms of the imposition of the fixed penalty will become a final order and will be published in the IFA’s bi-monthly magazine and remain on the IFA website for a period of three years.  
  • Any financial penalty ordered, if unpaid, will be subject to and pursued through the Courts of England and Wales.  

The following case types are suggested to fall within the scope of fixed penalties: 

  • Failure to submit a member return 
  • Failure to submit a firm return 
  • Failure to submit an affiliate return 
  • Failure to meet the CPD requirements  

Amended:  

  • A witness will now not be called to attend a Disciplinary Committee hearing unless the member disagrees with the witness’ written statement and requests that they attend to give oral evidence at least 10 working days ahead of the hearing date.  

Removed:  

  • The power to withdraw or make ineligible, with or without conditions, permanently or for a set period, a respondent’s practising certificate, from the Disciplinary Committee. The Disciplinary Committee will still have the options to impart fines, reprimands, severe reprimands, suspend or remove membership where appropriate. 
  • The right for a complainant (such as a client) to appeal a ‘Rest on File’. A rest on file is issued where there is a case to answer, but it is not in the public interest to pursue the matter at a conduct committee and is applied at the discretion of a case manager.   
Conclusion

It is imperative that you take time to familiarise yourself with the revisions and act on any changes in requirements. While there are no substantial changes in the Bye-laws and regulations, you should ensure that you are familiar with your obligations and these changes and consider the implications arising from these changes.