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FSA has no role in bank pay so why meddle with IFAs?

First, I want to comment on Ted Cordener’s letter (Money Marketing, November 20) where he urges the Chartered Insurance Institute not to steal the IFS name for the CII’s own use.

This sort of action should not surprise him, given the CII’s previous actions regarding the certified financial planner designation, which the CII wanted to use as chartered financial planner. I think the way the CII has conducted itself since again stealing the LIA from its members and beyond leaves a lot to be desired and is not conducive in supporting attitudes like integrity and sincerity.

Second, I am still astonished that the FSA can have Hector Sants appear on the Andrew Marr Show on October 19 and say the following: “We acknowledge that going into the downturn, going into the crisis, we should have worked more as a regulator with banks to ensure their management were properly focusing on the risks. Some of these banks – not all of the banks – some of these banks went into this downturn with a business model which has not been robust enough for the very particular circumstances…but we have performed very very well in the last 15 months. I’m very proud of the FSA in the last 15 months. We’ve done a good job.”

Well, I, for one, do not think they have done a good job. They patently failed to regulate the banks, other lending institutions which would have additionally stemmed their greed and allowed all sensible lending criteria to be abandoned, thereby failing to protect the public from their own profligacy, which they could not afford. I thought this was the FSA’s main remit as a regulator.

The other point I would like to make is that Hector Sants also said, and I paraphrase, that it was not the FSA’s job to make rules regarding the banks’ staff remuneration. If that is so, why do they delight in constantly interfering with the remuneration of financial advisers?

David Barnett

Principal

DPB Independent Financial Services

Edgware, Middlesex

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