Former director general of the ABI Mark Boleat has been put in charge of regulating claim-chasing firms but will only work part-time with a 1m budget.Boleat wrote a report ear-lier this year slamming trade body the Claims Standards Council’s credentials as a regulator. The Department for Constitutional Affairs has given him responsibility for implementing statutory regulation contained in the Compensation Bill, which is set to become law this week. Boleat will oversee a monitoring and compliance unit run by one of the UK’s local trading standards offices. Under the legislation, claim-chasers will need to be authorised, have professional indemnity cover and capital adequacy and undergo background checks. The authorisation process will start in November, with a deadline for applications in February next year. Boleat says firms which dodge regulation, including IFA firms that introduce business to claims chasers, will face prosecution. Industry sources say that Boleat may be the ideal candidate for the role but they are concerned about its part-time nature, limited budget, the tiered system and the use of an as yet undecided locally based trading standards office to regulate the whole of the UK. Boleat says: “Much of our work will be to ensure that those firms which are authorised are still complying with the rules but firms that fail to register, even after they have been given a warning, will be prosecuted.” Anand Associates James Brooke says: “It sounds like the new structure will be as efficient at regulating claim-chasers as the Home Office has been at deporting illegal immigrants that have spent time in jail. “There is a lack of joined-up thinking here. Since the FSA is regulating advisers, it should also regulate claim-chasers that are claiming that advisers gave poor advice.”
Safe Home Income Plans has revealed the total value of new business written in Q2 2006 was 262.8 million, a drop of 5.8 per cent on Q1 2006 income.But the figures were 0.75 per cent ahead of Q2 2005, which stood at 260.9m. Ship adds that, year on year, the number of new cases has […]
Safe Home Income Plan members wrote £262.8m worth of equity-release business in the second quarter, a fall of 5.8 per cent on Q1 but 0.75 per cent up on Q2 2005.
It is an extension of its group personal pension plan, allowing clients to switch to the self-investment function as and when required. ScotEq believes group Sipps will become more common but it does not expect the majority of members to use the self-investment option. As clients will only pay for self-investment if and when they […]
Hargreaves Lansdown head of research Mark Dampier says sales and marketing employees in the financial services sector often earn far more money than they deserve while IFAs are often underpaid. Dampier believes the fin-ancial sector as a whole rewards average performance with big salaries and bonuses and that in turn IFAs are relatively underpaid for […]
For a job as big as managing the auto-enrolment changes, it’s important to know what has been completed and what still lies in front of you to give you the reassurance that everything is in hand. Getting the planning and project management right at the outset can help you see the path ahead and ensure everyone knows their roles and responsibilities. To help with this, Johnson Fleming has produced a checklist outlining every step that needs to be taken when preparing for auto-enrolment.
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The Financial Services Compensation Scheme has declared self-invested personal pension operators Stadia Trustees, Brooklands Trustees and Montpelier Pension Administration Services in default. The lifeboat fund has received around 150 claims for compensation relating to the three businesses. Those claims relate to how the businesses set up, operated and administered Sipps through which people invested in […]
The Department for Work and Pensions has confirmed it will not change the pensions triple lock and will explore bolstering the powers of The Pensions Regulator in the forthcoming legislative period. The DWP published its “single departmental plan” yesterday, which sets out five objectives it is working towards over the next four years. It has […]
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