View more on these topics

Cazalet slams FSA &#39threat&#39 on Equitable

Influential analyst Ned Cazalet says he could soon rate Equitable Life insolvent and has attacked the FSA for using scare tactics to stop IFAs advi-sing clients to transfer out of the troubled life office last year.

Equitable is suing 15 exdirectors, including Christopher Headdon, John Sclater and Alan Nash, and is also suing former auditors Ernst & Young.

After Equitable was forced to close to new business in December 2000, the FSA issued a warning to IFAs that it would closely monitor advice given to Equitable policyholders to make sure IFAs had sufficient understanding of the situation and threatened advisers with disciplinary action.

Speaking at last week&#39s Prudential with-profits roadshow, Cazalet said: “I might shortly be rating Equitable as insolvent. The advice last year should have been to get out of Equitable – what was the FSA playing at?”

Hargreaves Lansdown pensions development manager Danny Cox says: “You could see the regulatory guidance as a veiled threat.

“We have been stuck between a rock and a hard place, with the regulator looming over us and without having enough information to give advice to clients about whether to stay in or not.”

FSA spokesman Rob McIvor says: “The situation has not changed since December 2000. It is very clear what the update says and we leave it to people to make their own minds up.”

A spokesman for the Equitable says: “The annual report 2001 shows that the society is solvent and the board of directors intend it shall remain so.”

Recommended

Misys points to dangers of defined payment

Misys supports the abolition of polarisation but is warning the FSA that the defined-payment system is unworkable and impossible to police.It claims that CP121 will restrict access to financial products rather than accomplishing its stated objective of opening the market up to consumers.Retention of polarisation is not an option considered by CP121 and Misys says […]

Fee-based advice will hit clients

It is a very sad day when, having practised for 33 years as an IFA and having done so without a fee being paid by our clients (without a murmur of discontent from a very large client bank), potential legislation is being suggested to force me arbitrarily to charge fees if I wish to retain […]

RJ Temple calls for distinction between multi-tie and whole of market adviser

A clear distinction between an intermediary advising on the whole of the market and a multi-tied adviser is the key to a level playing field for financial services, according to RJ Temple.In the firm&#39s response to the FSA&#39s CP121 RJ Temple argues it is more important for consumers to understand the difference between whole of […]

Fidelity denounces &#39crazy&#39 CP121

Fidelity, the UK&#39s biggest fund manager, has come out strongly against the FSA&#39s depolarisation plans, branding them “crazy” and likely to work to the detriment of consumers.In its response to CP121, Fidelity says forcing IFAs to decide between staying as they are or switching to one of several other adviser models is liable to bewilder […]

employee-focus-group

Five ways to make your employee focus group session a success

by Debra Corey, group reward director  You just planned and booked what you thought was the perfect vacation for you and your family. You call everyone together to share the great news and instead of receiving sounds of glee and delight, you receive groans and complaints.Your youngest says: “I hate beaches, didn’t you know that?” (You think to […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment