The FSA and Financial Ombudsman Service should be dismantled and the Financial Services and Markets Act repealed, according to the IFA Defence Union’s submission to the Tory’s economic competitiveness review.The IFADU was asked by Tory MP John Redwood to submit a paper as part of his group’s review of economic policy, which is set to report to Conservative leader David Cameron next summer. IFADU chief Evan Owen says the nine-page initial paper sets out what he believes is the only course of action available to undo the regulatory damage inflicted upon the industry by successive Governments over the years. The paper proposes closing down the FSA and replacing it with “less unwieldy” separate bodies on the retail side to regulate product providers and advisers. Owen says “pruning and selective lopping” of the regulator will only result in later growth reverting it to type and so a more radical solution is required. The paper calls for the FOS to be scrapped and replaced by tribunals made up equally of consumers and advisers. It says the tribunals should be based on established UK law and both parties should be allowed recourse to the courts if they believe the decision is wrong. It also calls for a £50-£100 refundable complaint fee to be paid to reduce fraudulent and opportunistic complaints. The IFADU paper says the current Financial Services Compensation Scheme should be replaced with an insurance fund paid for by a combination of the redirection of premiums paid for PI insurance and a product levy. Owen says: “The regulatory reaction to perceived problems discovered after the horse has bolted is a major problem for UK plc which has been made worse by regulatory interference with products and markets over the last two decades and now with the rush to find the new big idea for the promulgating of financial advice. These radical proposals seem to us to be the only way of remedying the situation.”
The service is based on a TCF audit, which assesses how a company is doing in key areas which the FSA refers to in communications. Haven director Mike Kennedy says the object of the audit is to identify areas of success and areas where more work is required, which then leads to a supporting action […]
Matrix Structured Products has established the Matrix ascension plan 3, a capital-protected hedge fund.
Investec has dropped Black Rock and is bringing its European fund in house, to be run by Nigel Hankin and Ben Williams. The fund has been run by BlackRock’s Albert Morillo since 2002.
The FSA has set out its five key priorities for its review of the distribution of retail investments and has called on the industry to take the lead in reforming the market saying it is on the cusp of change. The FSA’s Retail Distribution Review was launched in June 2006 with the objective of identifying […]
Trevor Greetham, Head of Multi Asset In a marked contrast to the surge in risk sentiment that followed President Trump’s election in November, markets greeted Emmanuel Macron’s victory in the French presidential election with satisfaction and relief, rather than euphoria. After rallying strongly on opinion polls that accurately predicted the outcome, the euro held onto […]
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Openwork is to launch a UK equity income fund and a strategic bond fund for its advisers network as it aims to diversify its new range, Money Marketing can reveal. Available from 5 December initially through the firm’s newly-launched model portfolios, the Omnis Strategic Bond fund will be run by Fidelity International veteran bond manager […]
The Children’s Investment Fund has asked the FCA and Bank of England to appoint a new chairman at the London Stock Exchange over fears corporate governance is not up to scratch. TCI, which holds a five per cent stake in the exchange, feels the forthcoming departure of LSE chief executive Xavier Rolet has not been […]
When the pension freedoms were first introduced, I could not help thinking it was a clever device to accelerate the income tax take. Instead of waiting many years to take income tax against modest annuity income payments, the government could grab a larger handful straightaway. After a couple of years of reflection, I still think […]