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IFAs want a new regulator in 2010

Almost half the IFA community want a change of regulator in 2010, according to a Marketing Innovation Forum survey.

Asked ‘what is the best thing the new year could bring to improve your working life?’, 44 per cent of respondents to the online survey say a change of regulator.

Twenty-one per cent of advisers say they want providers to focus more on helping advisers and 19 per cent say they want a change of government.

Just 15 per cent say they want more consumer confidence in financial services in 2010.

Marketing Innovation Forum co-founder Derek McGuire says: “As tends to be the case with any regulator, they’ve come in for their fair share of criticism, not helped by their recent publicity around expenses and bonuses.

“What is more refreshing to see is that advisers don’t perceive consumer confidence in financial services to have taken too bad a dent, as that is as important a cornerstone of our economy as the regulatory framework. Provided there remains a client base whose confidence in our industry is not irreparable, the excellent advisers surviving today’s challenges will continue to steer them through the available products, regardless how challenging the environment.”

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Comments

There are 7 comments at the moment, we would love to hear your opinion too.

  1. Having just come out of a bruising interview with the FSA, I can only agree.
    What is sickening is that the banks are providing blatantly bad advice and getting away with it.
    I understand that 90% of all complaints are from bank customers after poor advice.
    The FSA appears to have been briefed to bash the IFA sector until there is no more remaining.

  2. 2,675 IFA’s believe current FSA policies will prove disastrous to both businesses and consumers alike and have no confidence in the FSA to regulate either competently or fairly under its current management. Many more also share these views but are yet to sign the No10 petition. Do you agree – if so sign up: http://petitions.number10.gov.uk/FSANOCONFIDENCE/

  3. paolo standerwick 10th February 2010 at 4:06 pm

    IFAs do not need to be regulated at all. We sell packaged products, have to take a competency test such as exams which is a licence to trade, clients have cooling off notices and courts for protection.

    IFAs have the largest market share in production and volume with the lowest and virtually non existant complaints record e.g. lett than 1% UPHELD versus the banks 50%+. How do we do it?

    If Tories want long term savings to work, scrap the idea of regulating IFAs, give back tax credits to ISAs and pensions and keep commissions and bin any silly idea of RDR.

    Pre Labour days we have the best privately funded pension schemes in the world now we have a decimated pension sector. If it’s not broke don’ fix it.

  4. To Paolo Standerwick.

    I do not agree with your comment that IFA’s do not need to be regulated.

    Working on the provider side (self invested pensions) some of the advice I see is shocking. I had a case recently where an adviser giving clients advice on pension protection was unaware of the earnings cap.

    Someone needs to keep an eye on these people. Clearly there are many IFA’s out there who are competent, however, it is a case of a few bad apples and consumers do need to be protected from these poor advisers.

    I am not saying that the FSA is the answer, however, some form of regulation is required.

  5. paolo standerwick 10th February 2010 at 5:29 pm

    To PensionMan who wants to be anonymous.

    You may well have seen bad advice in your experience, but as I have seen very bad companies with very bad products as well which is far worse. We have had too much regulatory interference. With 30 years in the front line there are other ways of making sure the competency level of advisers. But this has not allwoed to be deveoped due to regulations getting in the way. It’s just with the flawed FSMA 2000 it was to the Panacea of evreything that became nothing apart from the destruction of providers and banks. It all comes down to very bad politicians.

    Your post cannot be valid if you remain anonymous as you could be Mr Bean!

  6. There are a number of essential components when designing a regulator.

    1. It must understand the nature of financial services and how consumers interact with their advisers.

    2. It must listen and take heed of genuine adviser concerns.

    3. It must ensure that consultations are just that, not policy statements disguised as debate.

    3. It must ensure that it accepts the reality that banks sell to consumers and IFAs advise clients.

    4. It must factor market share and contemporaneous complaints statistics into its policy making.

    5. It must be open and honest with firms at all times and not hide behind DPA or some other ruse in order to avoid embarassment.

    6. It must use resources wisely.

    There are another 36 I could add, but let’s leave it there.

  7. I think Mr Lakey sums it up well – a regulator is necessary but it must be very different from what we have now.

    And the comment “Your post cannot be valid if you remain anonymous as you could be Mr Bean!” was posted by “Anonymous | 10 Feb 2010 5:29 pm”. Brilliant!!

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