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Get down to business in the battle for balance

The time has come for the industry to make the case for business.

This is not some wishy-washy phrase which might be used by any of

Britain&#39s three centrist political parties but a call for an essential

change in attitude at the top of the FSA and the Treasury.

Currently, there are only two publicly expressed motives behind financial

services policy – to help consumers and to increase competition. These are

laudable aims but the problems come with implementation.

For a stark example of what is going wrong, one only has to look at

remarks made by Financial Services Consumer Panel chairman Colin Brown

about poor advice and how sales supervision by lenders will help. He is

entitled to his view but it is being used by the FSA to justify making no

changes to what almost every lender and intermediary believe will be a

disastrous regime in business terms.

In a similar way, for almost a decade, the OFT has been chomping at the

bit to axe polarisation in the interests of competition, leading to all

manner of claims about market distortion, culminating in the Sandler

review, but it was the OFT that axed the maximum commission agreement.

And in its most extreme case the consumer interest and competition are

supposedly wedded in the stakeholder pension. It is dirt cheap and actively

promotes cut-throat competition but could be disastrous for business.

If only some weighting were given to the need for business to do business,

then some much needed balance could be returned to policymaking.


Gaskin hits out at FSA moves

FSA proposals for mortgage regulation will compromise the independence ofIFAs and intrude on the commercial decisions of lenders, claims TheExch-ange chief executive Jim Gaskin. Speaking at the Council of Mortgage Lenders conference in Birmingham,Gaskin, a former regulator, said he could not see how IFAs can maintaintheir independence if lenders assume ultimate responsibility for theprovision of […]

Mimi offers protection

Mitchell says: “The product is well suited for many clients who require protection in connection with a mortgage. The policy can also be used for family protection and also business purposes, although it is not marketed as such.”On the subject of the marketing opportunities that the plan will provide, Miles cannot see any, Mitchell says: […]

BC trusts in bricks & mortar

BC Asset Management has introduced the property income and growth fund, a split capital investment trust that invests in commercial property.The investment trust consists of ordinary shares, zero dividend preference shares and bank debt. The aim is to provide ordinary shareholders with a high level of monthly income and long-term capital growth and zero dividend […]

Robert Reid

Oh no, not another worthy eulogising the benefits of a move to thesupposed higher moral ground, I hear you say. But don&#39t worry, I amdetermined to look at the positive aspects of running your business on any method of remuneration and, more important, running it at a profit. Over the years I have attended many […]


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