It claims higher capital resources for firms will lead to advisers paying a greater share of unsuitable advice claims, rather than the FSCS. Would not a better strategy be to ensure there are fewer claims in the first place?
The fact there are claims means firms and institutions are not doing things properly and the FSA is continuing to let this happen. A great proportion of the industry is bad and the drive for profit will continue to put consumers at risk.
The TCF initiative has the potential to work but I do not believe the FSA has the courage to make it work.
The FSA is good at crushing the small guy, but rubbish at regulating the big boys. The proof is everywhere. Why were consumers still being ripped off with payment protection insurance when banks have repeatedly been warned about this over the years?
Regulation in this country has been geared up to help big institutions rip off Joe Public. The outcome of the RDR should ensure this will continue well into the future.
Tinsdale Investment Management