View more on these topics

FSA policy seems to be set in stone

The responses to CP121 are clearly unanimously critical of the FSA&#39s apparent determination to proceed with its one-sided tweaking of the financial services distributive channels.

What is both frustrating and infuriating is the transparency of the charade that is being portrayed as a “consultation”. From the stance taken and vigorously defended by David Severn, Mr Tiner and the group of regulatory tinkerers, it is clear that no one is listening. If they were, you might have expected to hear the odd acknowledgement that the vast array of opponents might indeed have a valid point or two. But not a flicker can be detected in the unyielding position.

What is puzzling is the reason why? Why is an industry that has spent the past 15 years in one form of turmoil or another, deserving of further attack to the point of destruction?

The OFT has never understood this industry and has consistently initiated changes that have had the opposite effect to the one intended.

The obsession with commission is bewildering. Numerous commercial enterprises operate on commission whether it is called that or not. Banks build in commission when borrowing and lending money. Countries build in a “turn” on importing and exporting products on the wider world market. So, why is there such a preoccupation to rid the financial world of commission? If it would help, it could be redesignated as fees, fees built into a product&#39s costs to enable the lowest earners to benefit from receiving advice that they would ordinarily not be able to afford.

Yet, the whole regulatory world is intent on pursuing a policy that is being treated as though it were carved in tablets of stone by the Almighty. It is time that some responsible person stepped in and brought this dangerous game to a halt.

The proposition is so bizarre that it even finds itself in headlong collision with E.U. directives. But on this occasion, it would seem that the pro-EU lobby is prepared to stand by and witness the chaos that is bound to follow. What is wrong with everybody?

Buck Lopez

Capital Financial Services IFA

Bexhill-on-sea

Recommended

The many failures of the regulator

Mel Bousted asks why two different life offices take different approaches to the compliance aspects of handling new entrants to a GPP, both of them sincerely believing that their way is satisfactory to the regulator. Very probably, both of them are.The reasons for this situation are simple, obvious and manifold – failures(and waste) on the […]

Marsden Building Society five-year fixed

Marsden Building Society five-year fixedFixed term: Five yearsFixed rate: 5.69%Minimum loan: £30,000Maximum loan: NegotiableIncome multiples: 3 x principal or 2.5 x jointArrangement fee: £295Redemption fee: 5% of outstanding balance in year one, 4% of outstanding balance in year two, 3% of outstanding balance in year three, 2% of outstanding balance in year four, 1% of […]

FSA foresees fallout in adviser numbers

It is unlikely that lenders will be forced to offer borrowers advice when taking out a mortgage, according to FSA director of high-street firms Sarah Wilson.Questioned by Council of Mortgage Lenders director general Michael Coogan at last week&#39s Building Societies Association conference in Bournemouth, Wilson also quashed concerns over the impact of regulation on small […]

Temple hit by tribunal

IFA RJ Temple could have to pay out thousands of pounds in staff benefits after an employment tribunal ruled a senior sales manager was an employee rather than self-employed.RJ Temple is appealing against the decision but is placing all its senior sales team on contracts of employment.Former assistant regional director Paul Meaden says his income […]

Artemis Global Income: Making sense of global markets

The rally in cyclical ‘value’ stocks paused for breath in February, as investors took a more cautious tone and switched their attention back to defensive areas. In this article, Jacob de Tusch-Lec, manager of the Artemis Global Income Fund, explains how he has positioned the portfolio, given the many economic, geopolitical and policy risks that […]

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