Advisers welcome the Government’s plans to move prudential regulation to the Bank of England but want the new Consumer Protection and Markets Authority to levy fairer fees.
Churchouse Financial Planning director Keith Churchouse says moving prudential regulation to the bank would improve regulatory stability.
ARK Financial Planning Limited director Philip Stevenson says: “The Bank of England has more expertise in assessing the risks associated with banking services and the FSA proved itself to be totally incompetent.”
Yellowtail Financial Planning managing director Dennis Hall is an advocate of the new “twin peaks” approach but is wary about implementation of the rules. He says: “We are still trying to get a rulebook that fits all. You might get a rulebook that is a little closer to what we do. In principle, I am not against that but if we are just going to get a new series of boxes to check I do not think it is a good idea. It is a great opportunity to look at what regulation is supposed to be doing, how it has failed and what we are going to do to make it better.”
“My concerns are it is likely to be the same people building the same empires somewhere else. While every other Government department and everybody else seems to be implementing austerity measures we will see our fees going up. If there is a new raft of changes, we are not going to see our fees coming down. I would like to see somebody making these organisations justify what they are spending and why.”