View more on these topics

Fury at FSA &#39wish&#39 to be IFA

FSA plans to go head to head with IFAs by launching an online service providing specific financial advice have been slammed by the industry as a dangerous step.

The website, which is on an FSA “wishlist”, would see the regulator offering financial advice on a range of products.

It is thought that the service would aim to help people make investment decisions after providing details about income, savings strategy and their portfolio. There is no timetable for its implementation.

The proposal has sparked outrage among IFAs, with many asking who would regulate the regulator if it offers advice. IFA Geoff Kangley, a former practitioner member of the Fimbra council, says the plan would require a change in the legislation as the law does not allow the regulator to provide financial advice.

Another industry source says that any move to provide financial advice would require the FSA to waive its statutory exemption from prosecution in the event of it giving bad advice.

Aifa director general Paul Smee says the FSA would have to justify the use of the industry&#39s money to develop the scheme. He points to the lack of interest in league tables as a sign that consumers do not want advice from the regulator.

FSA spokeswoman Jackie Blyth says: “It is on a possible wishlist. It is one of these wishes that may or may not happen. Any developments would be quite far down the line and it is speculative at this point.”

LIA director of public affairs John Ellis says: “This is an unhealthy development. If the FSA goes down this route too far they are starting to do things that the people they regulate are doing.”

IFA Wentworth Rose managing director Philip Rose says: “I do not understand how this fits into their role in the industry. Surely their role is to regulate those who provide financial advice. Who is going to regulate the regulator?”

Comment, p33

Recommended

Newcastle Building Society – Capital Safe Bond

Monday, November 5, 2001.Type: Guaranteed equity bond.Aim: Growth by investing in the FTSE 100, Eurostoxx 50 and Nikkei225 indices.Minimum-maximum investment: £5,000-no maximum.Term: Five years.Guarantee: Capital returned in full at end of term regardless ofmovement in indices.Return: Capital with up to 85 per cent of growth in indices.Closing date: December 7, 2001.Commission: Initial 3 per cent.Tel: […]

Misselling fears on protected and guaranteed funds

Investors are unaware of the complexity of structured products such as protected or guaranteed investments and how their returns are calculated, warns IFA firm Deep Blue Financial.The company says it has carried out comprehensive analysis of the structured investment market and has identified what it calls “smoke and mirrors” products which are deliberately complex and […]

Sergeant oversees regulator&#39s risk-based approach

Like Michael Foot, Carol Sergeant hails from the Bank of England.Sergeant, one of three managing directors at the regulator, is responsible for regulatory processes and risk directorate, a role she assumed on June 1. She has control over authorisation, enforcement as well as the new risk-assessment division for the FSA.It is her team that dec-ides […]

Standard Life business soars by 75% to £1bn

Standard Life has taken £1bn in new business on an equivalent premium income basis since Nov-ember 16, 2000, an inc-rease of 75 per cent from £571m in the previous year.The figures relate to the period November 16, 2000 to October 15, 2001. Further details of the full year&#39s new business figures will be published in […]

Survey cover

EEF/Jelf Employee Benefits Sickness Absence Survey 2015

EEF stated in its 2015 EEF Manifesto that the UK’s growth prospects depend on people being fit, working and productive. Keeping people in work and helping people return to work is very important for the manufacturing sector. It means boosting productivity by getting people back into work as early as is possible, as well as fostering workplace cultures and environments that proactively manage individuals’ health conditions so that all can benefit from lower sickness absence outcomes.

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