The Treasury select committee has attacked the FSA for backing product providers over IFAs and leaving advisers as scapegoats for misselling.Committee member and LibDem Treasury spokeswoman Susan Kramer criticised FSA chairman Callum McCarthy and chief executive John Tiner for fragmentation in the regulatory advice framework since depolarisation and suggested that the system could be “breaking down”. Kramer cited the example of Money Marketing’s No Advice, No Protection campaign and other areas where consumers were likely to be confused by the patchwork of regulation that includes execution-only, full advice, multi-ties, generic advice and basic advice. Kramer said advisers have been made scapegoats for endowment and other misselling issues. She cited the Seymour v Ockwell case, where Zurich had to pay two-thirds of a claim over misselling an investment product, and evidence of providers charging in excess of Lautro commission rates as reasons why product providers should be picking up more of the costs of compensation. Tiner said that the FSA had a project in place to look at where these responsib- ilities fell. McCarthy said he was pleased that traditional channels of advice are being challenged by new entrants, creating opportunities and a more vibrant market. But Kramer responded by saying that, rather than choice, the regime has led to confusion. Kramer said: “There is concern that the strategy is behind the providers, so IFAs are made the scapegoats for misselling. IFAs are a key part of the process and many small ones are under threat. “We are concerned about the fragmentation of advice. There is a whole series of questions that need to be addressed, such as Money Marketing’s No Advice, No Protection campaign, showing real issues of concern.” Tiner said: “We have a pro- ject in place to look at these responsibilities. It is unhelpful for providers to step away but we do not accept that compensation has come from the wrong place.”
The industry is gearing up for the Money Marketing pensions summit next February to be held in the luxurious Celtic Manor complex in Wales. Top pension gurus will be discussing the eminent pen-sion issues in the final days before A-Day. The keynote debate will focus on the changing pension market and the role of advice […]
While not wishing to gain a reputation as a killjoy, it strikes me as dangerous that the stockmarket greets every new takeover bid with euphoria. I admit last week was somewhat exceptional.
Scottish Life group head of communications Alasdair Buchanan says snapshot surveys of the pension crisis may give a widely varying picture but short-term solutions such as selling the family silver must not obscure the fact that fundamental changes are needed
Bates Investment Services head of investment research James Dalby is believed to be moving to Norwich Unions investment products team. Dalby, one of the UKs foremost investment commentators, will work with NUs fund managers and liase with fund managers externally to design and build investment products for the provider. An announcement is expected shortly.
Artemis senior partner Mark Tyndall recognises the short-term ‘dangers’ for investors of a slowdown in China and beyond. But talk of volatility in developed markets is overstated, he says. Click here to watch video
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Scotland has introduced a new set of income tax bands, but pensions experts warn that the changes could cause issues with pension tax relief calculations. In the Scottish Budget today, the Government announced a new starter rate of 19p and then a 21p rate for those earning over £24,000. The higher rate of tax is […]
The scramble to do as many defined benefit transfers as possible while values remain high is unabated, and I am constantly amazed at how some firms have thrown caution to the wind in the hunt for their share of this – admittedly lucrative – opportunity. The problem is that advisers are putting their profits before […]
The FCA working group tasked with setting a template for fund charge disclosure is considering whether one or multiple templates would be more suitable. The institutional disclosure working group, chaired by transparency champion Chris Sier, has been tasked with creating a new template for fund costs and charges following the package of remedies outlined in […]