The FSA and Financial Ombudsman Service should be dismantled and the Financial Services and Markets Act repealed, according to the IFA Defence Union’s submission to the Tory’s economic competitiveness review.The IFADU was asked by Tory MP John Redwood to submit a paper as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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As the outlook for the UK’s economy remains uncertain, how can advisers prepare portfolios for any change in inflation? As higher inflation fails to appear on the horizon and wages grow faster than expected, fund managers are weighing up their portfolio moves for any potential changes in the economy. The UK consumer prices index rose […]
IFA directors Kevin and Cheryl Neal have been banned from being company directors by the Insolvency Service for six and four years, respectively. The married couple ran the now-defunct Hertfordshire-based Kevin Neal Associates Wealth Management. They were disqualified for taking assets from an insolvent company. The firm had been incorporated to take over the business interests […]
Hartley Pensions has bought the “untainted” assets of the Lifetime Sipp Company, which went into administration earlier this year. An update published today on the website of Lifetime’s administrators Kingston Smith & Partners says Hartley Pensions has also agreed to administer the tainted Sipps held by Lifetime Sipp. The administrator described tainted assets as those where […]