Newcob will give advisers new freedom and responsibilities as prescriptive rules are cut away but the FSA says it will keep a close eye on the qual- ity of the outcome.Speaking to Money Marketing on the release of the Newcob consultation, FSA director (retail policy and asset management sector) Dan Waters says the regime means the regulator will focus on the outcome of advisers’ decisions rather than how they get there. But he said the FSA would not tolerate any reduction in the quality of advice just because the rulebook has been halved due to the removal of prescriptive requirements. He said the sourcebook had become an unwieldy “list of things that had gone wrong in the industry” and the regulator could not continue on this route. He acknowledged there is a risk with the Newcob approach and said FSA super- visory staff will have to adapt the way they work as much as anyone else to take the new rules into account. Waters said that a good example of the Newcob reg- ime is the suitability letter, which will be replaced with a less prescriptive suitability report with no requirement to document the “most suitable” requirement. He said advisers will get more discretion over content but will have to keep in mind the high-level principle of treating customers fairly. The consultation proposes to maintain the payment menu and initial disclosure document, through an article 4 justification, with the future of the menu determined in a post-implementation review in April 2008. Waters admits that the menu has not been a success and said the regulator will look for a radical simplification of the document, echoing the views of trade bodies such as the ABI and Aifa.
HBOS is considering introducing trail commission on retention business instead of full proc fees in a raft of plans unveiled this week. The lender is in talks with sourcing engines to ensure its retention products appear on them to broaden distribution. HBOS is also considering launching a part-ownership, part-rental scheme for first-time buyers. BM Solutions […]
7.5% Annual Income Plan October ’06
Christie Scott’s director set up her business 10 years ago and has thrived by focusing on investment and building relationships with clients who get individual attention for their portfolios. Interview by Helen Pow
All eyes and ears this week should have been on the Bank of England and its unsurprising decision to raise interest rates to five per cent, but events at Celtic Manor in Wales for Mortgage Intelligence’s 10th year anniversary celebrations took centre stage after an extraordinary row.
By Kunal Desai, head of Indian Equities, Neptune India is officially the world’s fastest-growing major economy and remains firmly on track to become the third-largest economy by 2030, overtaking Japan and Germany. As an accelerating labour force combines with increasing labour productivity, is India getting too big to ignore? Click here for full article […]
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The New Model Business Academy received just over half the Government funding for its apprenticeship programme it was hoping for, which has led to paraplanner and administrator apprenticeships being shelved. NMBA, which is part of the SimplyBiz Group, announced earlier today it is opening applications for its apprenticeship programme this week. In December, it received […]
Platform Alliance Trust Savings must compensate a client after he was unable to make several investments because the online service was down. The client, Mr W, had around £2m in his Sipp fund with ATS. In late June 2016, his advisers tried to make a number of investments into specific funds, however, these did not […]
Last year, Money Marketing took a deep dive into how advisers are remunerated with an extensive reader survey. This year, we’re going even bigger and better, teaming up with recruitment consultancy BWD to bring you the definitive picture on pay. With your help, we hope to decode how qualifications, employment status, geography, gender, job title and other […]