View more on these topics

Banks rule as the regulator stays quiet

I refer the speech by Dr Thomas Huertas, director wholesale firms division, at the Institute of Economic Affairs’ 10th anniversary conference recently.

In this speech, Huertas invites banks to come forward with a fee-based advice solution for the masses. He says: “We are genuinely interested in working with banks to find a way to do so.”

He also covers price capping but what IFAs would be interested in are his comments about retrospection.

He said: “Such a solution would have to provide financial institutions who implemented the solution with some comfort that they would not be the victim of retrospection or second-guessed by a future regulatory regime, that is, the possibility of someone in the future concluding that a product that lost money must have been missold in the first place.”

When is the FSA going to talk to IFAs about such a proposition? Or is it a foregone conclusion that IFAs are destined for the scrapheap? Wasn’t it John Tiner who said that “retrospection is out of the question”? Do the comments made by Huertas indicate that the FSA has finally realised that we have have experienced exactly that and are still in the grip of retrospection by the back door via the FOS?

Although it may be possible to provide lowcost generic advice, I cannot for the life of me see how a bank can charge a fee for selling its own dismal range of products. Can you? Are we in the UK going to end up like Germany, with four or five providers selling their own shade of grey? Is that anti-competitive?

So many questions and yet no answers are forthcoming from the regulators. The banks rule OK.

Evan Owen

Recommended

Guidance needed from FSA after menu

Like most other industry colleagues, I have read with interest some of the assorted coverage of the FSA’s forced U-turn on the payment menu and IDD and I have been surprised at the number of what appear to be quite inaccurate observations on the subject. For example, David Severn is quoted as describing it as […]

Reita signs up three new members

Reita has signed up Derwent London, Jones Lang LaSalle Corporate Finance and Primary Health Properties as members of Reita, the educational and awareness campaign behind the reita.org website. Derwent London invests mainly in the West End but also in those newly improving locations where it perceives future value.Jones Lang LaSalle Corporate Finance advises on the […]

Insinger proceeds with caution

Insinger de Beaufort says it will maintain the defensive position of its multi-manager income fund despite some of its peers in the Investment Management Association’s cautious managed sector having higher exposure to equities and high-yield bonds.The company says the IMA cautious managed sector is contradictory in some ways as it allows up to 60 per […]

The Investment Clock: Keep calm and Macron!

Trevor Greetham, Head of Multi Asset In a marked contrast to the surge in risk sentiment that followed President Trump’s election in November, markets greeted Emmanuel Macron’s victory in the French presidential election with satisfaction and relief, rather than euphoria. After rallying strongly on opinion polls that accurately predicted the outcome, the euro held onto […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    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