View more on these topics

FSA warned over change to offshore listing rules

The Financial Services Consumer Panel has written to the FSA to say that their proposals to amend the stock exchange listing rules for offshore investment companies threaten to undermine investor protection.

Last December, the Association of Investment Companies called on the FSA to reconsider its latest proposals on listing rules for investment entities, warning of the potential dangers of a two-tier system.

FSA consultation CP06/21 is proposing to allow overseas investment companies to list under Chapter 14 with lighter obligations than UK based companies listing under Chapter 15.

This is with the aim of making the London Stock Exchange more attractive to non UK based companies to list in the UK.

These requirements were strengthened after the split-cap debacle in an attempt to stop a similar situation happening again but the AIC and The Consumer Panel have raised concerns that the move to change this could allow such a scenario being repeated.

The proposed change by the FSA could mean the reduction of protection measure such as the spread of investment risk, publishing of investment policy, prohibitions on substantial cross-shareholdings and the independence of board members and investment managers.

FSCP Chairman John Howard says: “We think that, with its current proposal, the FSA is at risk of making a serious mistake that will be damaging for investors and damaging for the confidence of the market. Indeed, a consequence would be that there would be a lighter touch regime for the companies which pose the greatest potential risk for investors – a reversal of the FSA’s normal risk-based policy.”

Recommended

Principle puzzle as FSA decides to keep RU64

The industry has attacked the FSA’s decision to retain the controversial RU64 rule, claiming it shows a lack of trust in the sector and conflicts with the regulator’s move to principles.Financial services firms had widely expected the FSA to drop the requirement to explain in writing why a personal pension is at least as suitable […]

Advice that makes my heart sink

As a practising accountant and IFA, there are two expressions which make my heart sink: “I am going self-employed” (meaning that it is a disguised employment) and: “I am going to put it in the wife’s name” (meaning that it is a sham gift). I am sorry to see that Sarah Anderson, solicitor in tax […]

The estate of things

Gregor Watt sums up the first couple of months of the Reit regime and finds some brokers sceptical of the new investment class but also welcoming the opportunity to invest in overseas property

FSA fines Regency for income withdrawal failings

The FSA has fined Regency Investment Services £14,000 for not obtaining enough personal and financial information from customers with small pension pots before advising them on income withdrawal.The regulator says between January 2003 and March 2006 Regency failed to record enough information about customers to justify recommending income withdrawal and therefore could not demonstrate the […]

Unfinished business?

Pension specialist Fiona Tait gives an update on three big announcements from the 2016 Budget – Pensions Advice Allowance (PAA), the Lifetime ISA (LISA) and the pension dashboard. £500 Pensions Advice Allowance What’s new Under current rules it is possible to deduct an adviser charge from a defined contribution pension fund to pay for financial […]

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