View more on these topics

£6bn regulation cut dismissed as poll soundbite

Financial advisers have hit out at Labour over “soundbite” tactics after it said it would cut £6bn from the cost of business regulation despite the FSA pushing ahead with costly financial services reforms.

Labour’s manifesto, published this week, says the party is committed to helping small businesses and entrepreneurs thrive.

It says: “We will continue to simplify regulation and avoid unnecessary red tape. If it is used correctly, regulation can help drive innovation as well as protect workers and consumers. We will seek to reduce the costs of regulation by more than £6bn by 2015.”

Labour refuses to confirm if the financial services sector would benefit from these planned savings.

In March, the FSA published its budget for 2010/11, which shows the regulator’s costs have risen by 18.3 per cent to £491m from £415m last year. FSA chief executive Hector Sants warns that a more intrusive regulator will cost the industry more.

Highclere Financial Services partner Alan Lakey says the Labour pledge is “electioneering” and is unlikely to result in lower costs for IFAs.

He says: “This is a soundbite that Labour thinks will help them get elected. It is fair to say that financial services is the most over-regulated sector. The retail distribution review is a piece of foolishness.

“It makes the Government and the FSA look like it is doing something constructive but it will not bring any benefits to businesses or consumers. It is obvious that, with higher capital adequacy requirements, higher minimum qualifications and increased regulatory costs, the IFA market is not at all attractive to new entrants.”

Evolve Financial Planning director James Norton says: “Financial services is seen as the whipping boy at the moment and I cannot see any cost reductions on the horizon. This is blatant electioneering.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Clear, fair and not misleading then.

  2. Green Eyed Monster 15th April 2010 at 10:42 am

    Labour’s election pledge does not include the financial services sector. Labour’s pledge refers to savings from the public purse. The FSa operates from the private sector. Labour has given control of theat private purse to the FSA and they have made on pledge to reduce spending- far from it!

  3. Who cares what Labour says? Within a few weeks Crash Gordon and his cronies will be out (we fervently hope and pray), and good riddance.

  4. All politions are members of the PEN15 club

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com