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Advisers back bank move but fear fee increases

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.”


John Hutton to lead public sector pensions commission

Former Labour Work and Pensions Secretary John Hutton is to lead an independent commission into the future for public sector pensions. Chancellor George Osborne announced Hutton’s appointment over the weekend to bring a “cross-party perspective” to a “national problem”. Hutton was Work and Pensions Secretary between November 2005 and June 2007 and famously raised concerns […]

Hodge pulls back on equity release

Hodge Lifetime is winding down new equity-release lending to focus on growing its annuity business. The firm will continue to write top-ups and honour drawdown facilities for existing customers but says redundancies are likely in the equity-release arm of the business. Hodge says it has taken the decision as a “prudent measure” due to the […]

Aegon to pull back in the UK

Aegon is dramatically scaling back its UK business by cutting 25 per cent of costs by 2011 and refocusing on at-retirement and workplace saving products. Following press reports claiming the Dutch insurer was offloading its UK arm for £1.5bn, Aegon revealed it had considered a full disposal but decided against it because in the current […]

'Feeling the Squeeze'

Royal London carried out a UK wide survey with 2,500 consumers age 35-44 over the summer. The survey found that over a third, 34 per cent, said their finances felt Squeezed and so were struggling to meet day-to-day expenses, despite 87 per cent being aware that they need to save more. However, the survey did […]


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