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Hector Sants responds to Andrew Tyrie letter

FSA chief executive Hector Sants has responded to Treasury select committee chairman Andrew Tyrie’s letter to assure him the regulator is taking his report seriously.

In a letter published this morning, Tyrie attacked the FSA’s immediate dismissal of the TSC’s call for a one-year delay to the retail distribution review.

Sants has responded to Tyrie suggesting the FSA is carefully considering the recommendations in the report.

Sants says the FSA will soon be publishing guidelines for eligibility for waivers from the RDR.

The letter states: “It was certainly not the intention of the FSA’s brief statement of July 14 to be seen as a peremptory rejection of any element of the committee’s report. Rather it was intended simply to ensure that the momentum behind the preparations for the RDR is not lost.”

“Prior to responding to the committee’s recommendations we will, of course, continue to consider carefully whether further mitigating actions, in addition to those already agreed, are necessary to address your concerns that firms or individuals will be unable, despite their best endeavours, to meet the deadline. For example, we will be publishing guidelines on eligibility for waivers from the qualifications requirements.”

In this week’s Money Marketing, a number of TSC members attacked the FSA’s swift rejection of the TSC’s key recommendation, suggesting it showed “arrogance” and “contempt” for the committee.


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There are 28 comments at the moment, we would love to hear your opinion too.

  1. don’t believe you Sants!

  2. Come on big H get off the fence as sat up there back-peddling is dangerous to your wealth – sorry typo, health!!

    It’s nothing new though for the FSA to say one thing and really mean another – like ‘we regulate banks’ actually means ‘we haven’t a clue what they are doing’.

    If the impact of this leadership wasn’t so damaging to the financial heartland of this country it would perhaps be laughable!!

  3. Your pants on fire Hector.
    You have realsied you dropped a big clanger with the TSC insulting reply and are back-tracking, whilst still having no intention of listening to them or anybody else.

  4. If IFAs are “unable despite their best endeavours” to meet the deadline, what have they been doing for the past few years? Everyone could see RDR was not going to go away, so it is a bit late bleating about it now.

  5. Of course Sants is “carefully considering the recommendations” He will then throw them in the bin and carry on regardless !

  6. Methinks he speaks with forked-tongue

  7. Apparently Sants hopes to have a reply to the TScs recommendations ready by September.
    If it takes the FSA that long to answer a letter, how long would they need to get RDR ready if they were a financial service firm?

  8. ‘carefully considering the recommendation’

    It doesn’t say that they are going to act on this ‘careful consideration’.

    Based upon previous comments about waivers I can’t see many people being able to get them anyway.

  9. Anonymous | 21 Jul 2011 12:30 pm

    I hope that you remembered to take your cardigan with you as it must be bloody cold at the top of that ivory tower that you are sat on!!

  10. Anonymous 12.30pm

    If IFAs are “unable despite their best endeavours” to meet the deadline.

    The RDR is a bit like jumping off Niagra Falls.

    I could be ready and prepaired by the end of next week. But as a business man, IFA and genuinely interested it was is best for the consumer, if you think the jump is just plain stupid its very hard to be motivated. Unless of course you are a Leming, which of course is what the FSA think we are.

  11. Alistair Paterson 21st July 2011 at 12:49 pm

    It’s a farce!! Did I miss something or has pantomime season opened early this year?

    Seriously, though, with the Credit Crunch, TCF, massively volatile markets, increased cap ad requirments, + RDR, I am genuinely struggling to find time to look after my clients money, never mind gap filling.

    I am well down the examination road, and still object to my 32 years of sterling care of my clients being utterly disregarded by RDR, but a 12 months delay in this climate seems eminently sensible to me. No doubt, the very reason the FSA will again dismiss it out of hand after “careful” consideration.

  12. Current Collins Dictionary definition:
    having or showing an exaggerated opinion of one’s own importance, merit, ability, etc.; conceited; overbearingly proud

    Will it be changed in future versions to read e.g. H Sants head of FSA?

    Posted anon as they have way too much power!

  13. As far as I can see this is all just “a show” with the TSC having no say or power to do anything but it looks good from a public point of view. The FSA know the TSC can’t do anything but humour them with a their comments and just carry on as before.

    Either the TSC has the power of Parliament and can use it or not but it is time the Treasury Select Committee backed up their concerns with action, not next year, but now otherwise you may as well not bother the good it does.

    This has gone on for years and it is ridiculous that the FSA can simply walk over an elected (well sort of) Government.

    Either our Government and Parliament decide what happens in this country or the FSA do?

    Which is it then?

    Come on TSC stand up for what you believe in and DO SOMETHING ABOUT IT, otherwise don’t bother.

  14. I could have predicted this response. And I’ll also predict the outcome…..Nothing will change. Sants, Nicoll and their equally arrogant quangos are always right, despite being so out of touch it beggars belief.They are expensive, and remain a frightening liability to IFAs and clients alike.

  15. I think that it is time for all the anonymous writers who are shouting about how they have passed their exams in the last three years remembered that those who have busy practices do not have a lot of free time to contnuously read obscure facts in the manuals to sit exams which have very little to do with the advice that we give. It also needs to be remembered that a lot of us did not start exams until last year as the FSA had not decided which ones were going to be acceptable and now we are having to struggle to get an exam booked without going 100 miles to find a place.
    Hector Sants does not care what happens to us or our clients and his actions prove this and it is about time Parliament did something about this type of organisation.

  16. Can you imagine the hoops you will need to jump through to get a waiver?
    You would propably need to be so ill you could not work anyway. So what is the point?
    The FSA do not have a human side, they are bureaucrats the two do not match.
    Apart from being ill anyone within 2 or 3 years of state pension age should be granted an automatic waiver as long as they intend to retire at that date. Or will that upset and discriminate against the young, smart, new model advisers? who have another 40 years or so to appreciate the time and effort they have put into becoming qualified?

  17. Please please can someone give Hector Santa a one way ticket back to France,a pay off which also means he is never allowed back in the UK.

    The guy is simply only interested in himself.when he is done he would have systematically destroyed financial advice in this country…. Along with a savings culture and god knows how many more people on the jobless register!

    He is driven by greed and self importance only.

  18. Can we please have a look at the RBOS report the FSA did too?

    Seems to me that putting this letter in the public domain is an attempt to paint the FSA as a reasonable organisation – we did not mean to offend, we are looking at alternatives, raa raa. Complete fabrication, falsehoods and nonsense.

    The FSA is totally corrupt, dishonest and despicable in its conduct in this matter. It is also unelected and unaccountable. What was Gordon Brown thinking of – as usual nothing of value, as the evidence continues to confirm.

    Time to speak to your MP’s again

  19. Hector just resign and pick up another big cheque to go with your big ego, oh and take the other senior staff with you and the lights might come back on again in the small, efficient UK Financial services sector.
    Alternativly tell us the truth (just for once)

  20. If there is no one around to guide me on how to save £50 to £100 per month into a product that meets my needs and Attitude to risk then I JUST WON’T SAVE

  21. Dear Anonymous

    As an IFA I can tell you what I have been doing in the last few years. 1. Visiting clients, 2. filling out CPD, 3. segmenting my clients, 4. running the business, 5. filling out volumes of compliance reports and Gabriel, 6. visiting my disabled husband in Care Home, 7. Looking after my disabled mother, 8. recovering from Heart surgery, 9. studying for exams and trying to book exams at a centre within a 50 mile radius, CII take note – need I continue!!!!!!!!

  22. Re Anon@ 2.00
    You have my sympathy as I am in a similar situation. Will not hold my breath that the FSA will consider situations like yours a good enough reason to qualify for a waiver!
    Good luck anyway.

  23. @ Anon @ 2.00

    You forgot to mention TCF…..

    .. best to all……

  24. Pull the other one Hector, you idiot.You have been reading to much Pinocchio,but keep digging and hopefully you will bury yourself.

  25. Quoue “Anonymous | 21 Jul 2011 1:00 pm

    Apart from being ill anyone within 2 or 3 years of state pension age should be granted an automatic waiver as long as they intend to retire at that date. Or will that upset and discriminate against the young, smart, new model advisers? who have another 40 years or so to appreciate the time and effort they have put into becoming qualified?”

    So if I magically hit age 65 by say 31st December 2015, I can continue to work – but if I am 65 on 1st January 2016 I have to do the exams? Age Discrimination Claim anyone?

    Plus what happens if there is the waiver – who will pay to ensure that those given the waiver DO cease giviing advice? Plus no doube once waiver is given, those will demand to be given full licence to continue until they want to stop?

    Lastly, if it is allowed, who will assess whether the individual is suitable to continue to give advice? Would you pay £1,000 to the FSA a day of assessment (and the CII already do something similar – which costs £1,500!).?

  26. Paul Howard
    Would you spend time and money on something that would be absolutely useless to you AND your clients? Why should someone nearing retirement spend a fortune to remain in business for a year or two? And why should they lose their livlihoods at the whim of a mad dictator?
    The new requirements are not only unnecessary they are illegal.
    If an adviser is not deemed fit and proper on jan 1st 2013 the fsa has no business allowing him to work the day before that.
    No doubt you are one of the NMAs who think old dinosaurs should roll over and die.
    Well here’s news for you they will not.
    If my clients wanted to deal with NMAs and pay them a fee they would be beating a path to your door, instead of which they are in my office, paying ME a fee or commission, whichever THEY decide is best for them.

  27. @anonymous

    Isn’t it about time you people put your name down when you write on this blog. It is always interesting to see who is saying what and to get an idea of the type of firm they are.

    The problem with our industry their is no consensus on anything and generally I think it is all about vested interested. Those qualified think that a number of advisors going out of business will send clients rushing through their doors. Those that are not qualified some do have their head in the sand, but many others are trying to keep up with the changes being made, the economy, legislation changes on pensions etc and the problem is as soon as those changes are made, another lot will follow.

    The regulator will not be happy with level four qualifications it will go to level six within a very short period of time.

    The TSC report is not just about qualifications, it is about the whole implementation of RDR and what benefits it brings to the end consumer.

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