Life insurers are accusing the FSA of washing its hands of the Treasury select committee’s recommendation for an industrywide rating system for investment funds.In its latest meeting with the Financial Services Forum, the FSA said the dangers of implementing such a system were too high but it gave invited the industry to come up with its own initiative. The Association of British Insurers, which is piloting an industrywide risk-rating system, says the FSA is failing to take the initiative on the issue. The plan is opposed by the Investment Management Association, In its report last year entitled, Restoring Confidence in the Long Term Savings Industry, the Treasury select committee asked the FSA to investigate a traffic-light risk-rating scheme for investment funds to help consumers and advisers. An ABI spokesman says: “There is a compelling case for single risk indicators but it is not going to work without the full co-operation of the FSA.” Which? principal policy adviser Mick McAteer says: “We have the worst possible scenario where customers are confused by companies having different risk indicators. The FSA is just scared of damaging its reputation and devolving regulatory responsibility to the industry.” Royal London head of corporate affairs Gareth Evans says: “As the organisation that polices the industry, the FSA is the only body capable of implementing this.” But IMA spokeswoman Mona Patel “Risks are multi faceted so a single risk indicator would not work.” The FSA declines to comment on the matter.
How can investors harness the winds that have been blowing savagely across the US markets this year?
Restrictive covenants in Berry Birch & Noble Financial Planning’s contracts with its IFAs have been deemed unenforceable by a High Court judge. BB&NFP failed in its case against five former advisers who it claimed broke confid-entiality covenants and termination restrictions when they left the network to set up on their own. BB&NFP brought the application […]
The average investment trust discount has fallen to 7.4 per cent, its lowest level in more than a decade following two years of strong market growth. The AITC says greater focus on good governance and the increased use of discount control mechanisms, such as share buybacks also helped.
Pensioners moving from unsecured pensions into alternatively secured pensions will see their maxi- mum income fall dramatically under the proposed new tables from the Government Actuary’s Department. Standard Life head of pensions policy John Lawson says the near 40 per cent drop in maximum income for males moving from unsecured pensions – or pre-75 drawdown […]
December has left me destitute. My piggy bank lies broken and empty, my lunchtime meal deal feels like an extravagant expense and I’m down to the Bountys in my box of Celebrations. But I won’t mourn my dearly departed pennies. Between buying gifts for loved ones (then deciding to keep them for myself) to treating […]
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