In fact, they are now going to make it up as they go along with governance based on judgements about the future. Has the regulator now become an advisory firm in itself? Is its view always going to be the right one? I feel it may be digging a large hole for itself. It really has lost the plot. When things progress this far, then you know it is not the IFA model that is broken, it is the regulator.
Remember, you have all been warned, be very frightened.
The way that regulation is progressing, we could now be at a point where technically it is impossible not to do wrong in the regulator’s eyes with some aspect of an advisory business. Its power has become too great. If it wants to shut down any firm, I am sure it could find a reason or a reason that will happen in the future.
The current regulation system is totally unfair. How many banks have been shut down for regulatory infringements? None, they just go bust instead.
I am not saying the IFA profession is innocent, far from it. There are still many firms peddling product sales wrapped up as advice and there are firms that have put profit well ahead of clients’ wellbeing. Back to the point, the FSA is totally muddled, headless chickens come to mind, headless chickens with machine guns, be very frightened.
Tinsdale Investment Management,