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‘Insufficient case’ for long stop

The legal adviser to the joint committee on human rights has found that the lack of a 15-year long stop for financial advisers is not “sufficiently significant” for the committee to pursue.

Highclere Financial Services partner Alan Lakey wrote to the joint committee in December calling for an investigation and in May committee chairman and Labour MP Andrew Dismore asked City minister Lord Myners to justify why the FSA will not allow advisers a long stop.

Myners said the FSA considered a long stop under the retail distribution review but there was not a “sufficiently strong case” to merit implementing it.

Committee clerk Mark Egan responded to Lakey quoting the legal adviser’s view that IFAs are not treated less favourably than other professionals.

Lakey says he is shocked that the committee’s adviser has missed central points of the argument and he will again write to Dismore on the issue.

He says: “The conclusions that the legal adviser has reached are unbelievable and simply not accurate.”


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There are 6 comments at the moment, we would love to hear your opinion too.

  1. Finger in the dyke
    They are holding back the unstoppable. Shame on them all.

  2. Where was the evidence to remove the longstop from the rules
    This is all being made up by this lot on the hoof. If this was the original conclusion of the RDR team, then get them Amanda Bowe and all her original lot to swear an oath to the effect they did not find sufficient a case.
    Either we have a 15 year longstop for ALL professions or we should not have it for ANY profession. Let’s see all those legal experts at the F-pack waive their right to a longsgtop. I bet they will NOT put their money where their mouth is. What a shower the whole lot of them and we have to pay this discredited bunch by law!

  3. ‘Insufficient case’ for long stop
    “Myners said the FSA considered a long stop under the retail distribution review but there was not a “sufficiently strong case” to merit implementing it.” If such a statement doesn’t constitute proof absolute that the FSA has no regard whatsoever for the justice of English Law afforded to the rest of the population, let alone natural justice, then most people would be hard pressed to think of a better example. As has been said on many past occasions, the FSA, like the PIA before it, is an unbridled monster that rides roughshod over anyone or anything that dares to try to stand in its way. As for Myners, words cannot adequately express my utter contempt for the man.

    What is going on here? Are they all stupid or is there indeed a conspiracy against IFA’s. How can it be said that IFA’s are not treated less favourably than any other profession when we are the only people in the land NOT to be afforded the 15 year longstop. I had high hopes from Lord Dismore when alan Lakey first wrote to him but now feel he has listened to others without examining what is blatently obvious. The unfairness is staring him in the face. This is outrageous! We need to do something as a collective group such as refusing to pay our FSA fees or fscs levies until this is given proper consideration. If we act as a group we can achieve something. Alan please start a campaign involving every IFA in the land in order to put a stop to this blatant discrimination. As it stands we probably have less rights than a guinea pig. It is because we are lone voices crying in the wilderness we are not heard. We need to band together before they will hear us.

  5. Let’s reverse Myners statement
    And ask him where the evidence was produced for the removal of the longstop. We should not have to prove our right to have something that was removed without consultation or discussion in the first place.
    WHO made the decision to remove it and what evidence for it’s removal was presented?
    This is not a threat, it is a promise that IF or when I have a complaint which I would under any other profession have a right to claim the 15 year longstop as a defence, the FOS consider it, then I will consider whether to cause the same level of financial loss to anyone who has condoned the removal of the longstop for one section of society only. So that includes all those F-pack employees who by their silence condone this action, Lord Myners, Lord Dismore and any others I can think of. Now if the FSA wants to deem me not fit or proper for warning them now that I will stand up for my own loss of rights if they want to pick on me and will be vocal about the rights of my fellow advisers now, then fine, I’d rather have principles than keep my mouth shut to keep a job unlike most of the F-pack appear to do.

  6. Please consider writing something similar to your MP and prospective MP after adjusting for your own situation.
    I will be drafing something to this effect to clients in due course. In the emantime it has gone to my staff (small that it is)

    Generally, I abhor the concept of single issue politics, but there are times when an issue is of such moment that one must make a clear stand upon that issue alone. Such is the issue of the removal of rights under the Statute of Limitations to a 15 year longstop, on claims against Independent Financial Advisers.

    I am a lifelong xxx supporter, My vote at the next election however, will depend solely upon the response of each candidate to the following question:-

    “Do you support the removal of rights, given by parliament to all, from one specific identifiable section of society, despite rulings from the House of Lords and overwhelming legal opinion that such actions are a breach of Human Rights legislation?”

    I have been made aware that my employer/IFA and all their their peers have effectively been made outlaws by removal of this defence in law. If we live outside the protection of the law, then expecting us to abide by any other UK laws, when, or if, a complaint is pursued outside a 15 year longstop, is unwise. Bear in mind the FOS can impose a settlement of up to £100,000 and effectively make someone unemployable ever again. Someone who may well have done everything right over 15 years ago, only to be judged against the rules of the day, with the benefit of hindsight 20 years later.

    This is a ‘rule of law’ issue. If the State can ride roughshod over one small group of society, clearly they can do so for others. In other words my employer/IFAs vehement objection to this arbitrary curtailment of rights is not solely based on their interests but also those of the wider society. My employer/adviser tells me that like most other IFAs, they have (so far) been financially unaffected by this process, but this is a right which should not have been removed in the first place and for which no justifiable reason was EVER presented. If it impacts upon just one individual then it is unfair and inappropriate.

    Prior to the election, I am asking that you publicly condemn the removal of the longstop, contrary to what your party (via Mark Hoban if Con or Gordon Brown if NULabour) has said. (As Mark Hoban is apparently an accountant, or Cherie Blair is a barrister, delete by party allegance) you may like to ask if THEY will waive their right to the defence of a 15 year longstop. If they and the majority of accountants and solicitors who are members of the (party name) accept removal of this right in their own personal cases, then that could be said to be a democracy and perhaps we should accept that it becomes the rule of law for ALL professions.

    My adviser/employer intends to seek the same condemnation from other candidates at the next election, and to make public their responses. I then intend to vote according to my conscience. I would hope you take a stand on this basis too.

    You should be aware that I am not the only individual taking this position. Many, many more people spurred on by their adviser throughout the country intend to campaign against this injustice. That campaign will not only involve our personal vote. We will also be writing to our friends, warning them of the dangers of providing varying protection under the law based on profession, religion or race.

    With thousands of capable and experienced IFAs due to be forced out of their chosen industry, and millions of clients driven into the hands of discredited Bank advisers you may well find that votes will be won or lost.

    I trust that, in the interests of fairness and justice, you will now reply to this letter/email stating your personal support for this campaign. If so I can assure you of my support at the next election

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