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Give credit for debt advice

Mr Rodger says that to discuss debts you need a consumer credit licence.

This is true but surely you do not need one of these in order to suggest to a client that he reduces his mortgage or debt rather than investing in what he calls other investment products but I would say that investment products are an alternative. This is just joined-up thinking and is common sense.

Some of us do have a consumer credit licence, including debt counselling, and I would suggest that most financial advisers ought to have this as a matter of course.

Turning to anti-money laundering measures, I would say that this has got completely out of hand.

I recently wanted to organise a deposit account for a client for which I have a procuration signature at a bank. It turned out that this will only work for powers of attorney.

My client is disabled and blind and cannot attend at the bank personally so the only of having the account, which pays 4.4 per cent interest, is by using a power of attorney which, hopefully, I can do through the client’s son, otherwise it is impossible.

Prudential telephoned me recently and wanted to go through a security check for a client. I said that as they had rung me I was not prepared to do this and they could do it all by post.

I cannot imagine that all these things are causing a problem.

Crooks out there who want to defeat the regulations will have no problem and it is getting beyond a joke, particularly at a time when we had understood that the anti-money-laundering regulations were supposed to have been simplified.

My eye and Betty Martin, the reverse is obviously true and it is causing us a lot of unwarranted and extra work which is not improving the security of the country one jot or tittle.

I would also like to point out with regard to James Brooke’s recent letter about War Loan that the situation is actually worse than he says.

Originally, War Loan was issued at a coupon of 5 per cent with an end date of, I think, 1947-1952.

Before the Second World War, the Government asked people to be patriotic and to take a reduction in coupon from 5 per cent to 3.5 per cent and then remove the end-date.

It suits the Government not to repay it because it is only having to pay 3.5 per cent on the money.

When interest rates were high, the value of the stock show downward. People were financially slaughtered and it is an absolute outrage.

BGW Jamieson
Principal,
Jamieson Financial Management,
Bognor Regis, West Sussex

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