Mark Hoban
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He did not lose his Conservative streak while studying economics at the London School of Economics, which he says wasa "hotbed of left wing activity" at the time. Perhaps it rubbed off as two of his fellow students also went on to become Tory MPs.
After graduating, he went into chartered accountancy with PricewaterhouseCoopers, where he audited financial advisers andwas introduced to the trials and tribulations that they face.
The main trial currently facing financial advisers is the FSA's retail distribution review and Hoban, who entered Parliament in 2001, welcomes it, in theory. He believes the distribution model needs a shake-up because many people, primarily low-earners, do not have access to quality independent advice and the line between quality and not sogood is often blurred.
He says: "I want to see an outcome where people have better access to products and advice, where they have greater confidencein the sales process and they know the people they turn to have the right qualification,skills and knowledge to support them through the sales process."
But the MP for Fareham in Hampshire saysit is vital the industry works together to reacha conclusion which is in everyone's interests, and praises the Association of Independent Financial Advisers for being proactive in its response to the review. The recently published manifesto for advice, produced by Aifa, states that advisers have an obligation to deliver the most suitable advice in the interest of their clients, and that consumers should be able to obtain fair, expert advice from financial advisers in order to become well informed about their financial decisions and actions.
"It is really important that IFAs take part in this. They are at the coalface so it is a process they need to control and influence. It is something they should be proactive about rather than reactive and I think that,by producing its manifesto for advice, Aifais being very proactive. That is the best wayto shape the RDR so a satisfactory outcomeis reached for IFAs as well as for other interested parties.
"I feel that IFAs have a really important role to play in financial services and I want tosee them emerge from the RDR stronger,with a clearer sense of their role, and confident that, in what are rapidly changing markets, they have a very good future.We are keen to see what comes out ofthis final stage of the review."
Many advisers feel that red tape is impinging on how they meet their clients' needs and Hoban believes there is a fine line between hamstringing advisers and ensuring consumers are protected. He says improving financial capability by educating childrenin schools will allow for less stringent regulation.
"We have got to be conscious of the imbalance of power between consumers and advisers and product providers and we need to make sure that we give consumers proper protection because they are at a disadvan-tage when they come to talk to peopleabout those products."
Hoban is a believer in principle-based regulation. He says the model shouldgive advisers more responsibility and freedom to decide how they operate because it will encourage them to embed compliance into how they work. He says compliance should be a fundamental part of whatthey do rather than something whichruns alongside.
He adds that the FSA needs to be scrutinised to ensure it is making efficient use of the fees it charges advisers, which are set to increase by 15 per cent this year. But he also says advisers need to be realistic and accept that things cost money to improve. He says: "There is no such thing as free regulation."
Hoban is supportive of outgoing FSA chairman Callum McCarthy's record and new chief executive Hector Sants' job so far but he disagrees with Chancellor Alistair Darling's decision to give the regulator more powersin the wake of Northern Rock's collapse.
"I do not believe the FSA should have greater powers. It is the Bank of England in the end that will have to bail out financial institutions that have problems, so it follows that it should have the role of assessing individual banks and building societies."
But he disagrees with calls for powers to be taken away from the FSA. "The FSA should still remain the regulator. I think that, given the integrated nature of today's financial institutions, it would be very difficult to break it up. The reforms we have announced are not there to undermine the FSA. Theyare there to determine who should be taking responsibility for this particular areaand given the bank's responsibility for financial stability it should be up to thebank rather than the FSA."
Hoban also recognises that recent proposals to reform the tax regime are leaving many advisers in the dark. He says Chancellor Darling's plans for an 18 per cent flat rate capital gains tax "came off the back of a fag packet".
He says: "It is important to understand the impact that these changes will have on savings. I understand the Association of British Insurers' argument that the 18 per cent flat rate opens up a gap between mutual funds and investment bonds but I do not think Alistair Darling has the appetite for another embarrassing U-turn.
"The other argument is that these changes will lead to a switch between bonds and mutuals with seeping along the way.It really demonstrates that you need proper consultation."
According to Hoban, the Conservatives recognise that businesses want a predictable, stable tax regime. He says the party understands small businesses and the financial sector and wants to see companies grow and develop.
Lives: Fareham in Hampshire with my wife Fiona Career history:1985-2001 qualified as a chartered accountant and worked for PricewaterhouseCoopers and its predecessor firms. 2001 to date: Member of Parliament for Fareham (Shadow Financial Secretary to the Treasury since December 2005) Likes: Cooking, travelling and staying in touch with friends and family Dislikes: Being bored Drives: Volvo S60 Favourite film: Chariots of Fire Favourite book: A Dance to the Music of Time by Anthony Powell Favourite Band: The Fratellis Heroes: People who are proud of their beliefs Career ambition: To be in Government If I weren't an MP, I would be... A chartered accountant - still! If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
Born: Durham, 1964
