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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How are advisers handling client questions on crypto-currencies?
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A tough start for 2017 consensus trades
By Kacper Brzezniak Every year, starting around November, investment banks (and fund managers) begin to drip out their outlooks for currencies, rates, economies, you name it, for the following year. The consensus has been largely wrong for the past four or five years; those multiple rate hikes never came, the bond market is still alive […]
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Beaufort Investments appoints new CIO
Discretionary fund manager Beaufort Investment has promoted internally to fill the position of chief investment officer and has also appointed a new funds research executive. Beaufort Investment is part of the vertically integrated Beaufort Financial group. Head of portfolio construction Shane Balkham has been appointed as CIO and investment analyst Emma Clarke has been named […]
Profile: ‘We could be facing a constitutional crisis in the UK’ says Leodis chief
New Leodis Wealth chief executive on supporting clients through the chaos caused by the UK’s exit from the EU The long and tortuous road to Brexit has taken us from a political soap opera to what many regard as a tragedy over the past two-and-a-half years. Whatever drama is yet to unfold, the message that […]
Five minutes with…The Lang Cat’s Steve Nelson
Consulting director at The Lang Cat Steve Nelson talks making sure clients know what they’re buying and the joys of research ahead of his appearance at Money Marketing’s flagship conference. What one word or phrase do you think sums up the state of the financial planning profession today? I’m going to defer to our adviser […]
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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 !