PFS chief executive Keith Richards, Threesixty managing director Russell Facer and financial planner Susan Hill sit down with Money Marketing editor Justin Cash to discuss what’s wrong with the FSCS, and how it can be reformed.
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FCA fines broker firm £409k over trade surveillance system
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2018 in review: The year in pensions
New DB transfer rules, Sipp legal cases and CDCs are the big pensions news this year says Michael Klimes
Phil Wickenden: Make 2019 all about client experience
As we hurtle towards the new year, it is worth remembering much of the so-called client-centricity discussed is, in fact, little more than process that will not determine whether you win, lose or draw. Sure, a process needs to be reliable, cost-efficient and to point the right service at the right people. But it is […]
Trade bodies urge trustees to hold investment consultants to account on ESG issues
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Why not utilise surplus FCA fine money to support the FSCS?
The model is clearly unacceptable when the FSCS levy is higher than your PI cost. The levy cannot be passed onto the PI market, the PI market will collapse.
Some great ideas from Keith, this must be a legislation change. The discussion around the possible issues within the DB market dwarf the issues within the SIPP market.
The SIPP court cases due this month could add £100M+ onto the FSCS levy. The worry is that the claims management companies are the biggest bidders for these companies.
A full review of the FSCS levy is required.
The only fair way, is to equitable fund the FSCS and ditch the need for PI, Keith’ suggestions only go part way there with a centralized fund, but we would still have to get PI.
All three seem to dodge the fact that these levies as with any cost gets passed on to the client, the charges I make on my clients pays for all my business costs, if these costs increase by way of adhoc levies then so do my charges !
Its fair to say now if you do or have done any kind of business that is viewed as higher risk then your PI cost is going to reflect that, irrespective of your absence of complaints, business model and systems, which means there is a real business argument to de-risk and greatly reduce costs on your business as much as possible and only deal in vanilla, this cant be good for the industry moving forward ?
The FCA have all the data it needs to pass on to the FSCS which could determine the cost for equitable funding, turnover, complaints, risk, product types. The FOS (with some major changes) are more than capable to handle the complaints and make a informed ruling.
The big plus point for us and our clients is… there would be no exclusions no hidden clause’s, no Cap Ad, if a claim is made and upheld then the money is paid out, and our clients are not paying twice for protection (PI and the FSCS)
Forget the cap ad limit, its a waste of time and waste of resource anyway, lets face it any person or company who knows the ~~~~ is about to hit the fan is going to strip out all the assets its got and fold !