View more on these topics

FSA approach is self-interested

The CP121 proposals are counter-productive for the consumer, practitioners and market forces.

The FSA approach is in the self-interest of the regulator&#39s singular, task-oriented efficiencies. The only beneficiaries are the banks and major financial institutions looking for a short cut to market share.

All the consumer can look forward to is confusion and erosion of choice as most advisers are forced into multi-tie or distributor status.

Prohibition of the independent label for commission remuneration means that the less well off will be denied access to independent financial advice.

Interference and manipulation of market forces is nothing less than fraud and sharp practice. This is more than just anti-competitive, it is a total disregard of fair play, normal business practices and the democratic ideals that this country is supposed to uphold.

The FSA claims that transparency of remuneration for advice or transactions is the motivation for the proposed upheavals. If this is so, why must the world be turned upside down for all and sundry?

My terms of business offer every client a clear choice of how they remunerate us. They can opt for a defined-fee basis or they can instruct us to take commission from the provider.

Their preference is thereafter clearly documented in either a fee agreement or a letter confirming the relevant commission payment we expect for any specified transactions. Remuneration should not be relevant to a regulator unless the client is subjected to fraud, in which case, the police would be involved.

If the FSA proposals are enforced, then the majority of my clients are denied choice of access to my services as an independent adviser as too many of my clients will not accept fee-charging.

The regulator will have forced me into a category of a distributor or multi-tie. Neither the marketplace nor our clients are in a position to make these artificial changes for the convenience of the regulator and the major banks.

I am amazed that providers and heads of big IFA groups are using words such as “it&#39s a done deal”. Did they really go into business with such minimal ethics or backbone to defend their commercial rights?

Why are so many providers bowing to the upstart dictator-ships? If this is how they behave, it is little wonder that a new regulator can deliver a “done deal”.

Tony Creeger

Creeger Financial,

Camberley

Recommended

The university of life

When children go to university life for their parents can work out to be extremely expensive. This is especially true if parents are having to pay the costs from taxed income.The costs usually include a contribution towards the normal living expenses of the children and currently, for most of the UK, also include tuition fees […]

Inside Edge: Peter Hales

It is hard to believe that the stakeholder pension is already more than a year old.I remember thinking last year that, by some coincidence, Post-It notes were also launched on to the market on April 6, 1980. They too are simple, cheap and innovative but if you do not push them hard enough then there […]

New products on horizon as Clinicare granted status

PMI insurer Clinicare has finally received authorisation from the FSA after fighting for two years to achieve independent subsidiary status from French parent company Assurances Mutuelles de France.The move means that the UK subsidiary will have much more freedom in the designing and pricing of products for the market instead of simply acting as an […]

Nothing for savers in budget says RJ Temple

The Government has done nothing to encourage saving in its budget and through its tax increases will discourage people from saving according to national IFA RJ Temple.The IFA says while high-net-worth individuals will benefit from the greater flexibility for VCTs and the reduction in CGT on business assets, there is nothing for the ordinary saver.RJ […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com