View more on these topics

Judgement day

As a frequent letter writer and contributor to our trade press on the

subject of PI Insurance,I must thank David Kenmir for providing so

much mis-guided comment which I can write about.

If it is only the bad IFAs which cannot get PI Insurance, I would

like to know which ones they are and how he intends making such a

judgement. The absence of compliant PI Insurance is industrywide.

Therefore, that cannot be the basis of measurement therefore.

The ability to “self-insure”in the absence of compliant PI insurance

will enable the IFA to argue successfully with the FSA for a

continuation of trading. Conversely, those without sufficient liquid

assets will not be able to. I have been clearly advised by the FSA

that that will be the basis on which I can continue to trade. If my

com-pany&#39s liquid assets are insuff-icient according to a yardstick

which they have yet to dream up, am I considered a bad IFA?

As Sir Howard Davies has acknowledged publicly, the PI crisis is very

largely to do with the pension review and not to do with whether this

company is a good IFA or a bad IFA.

As liquid assets would be the basis for deciding who continues and

who does not, could we wonder where those liquid assets came from.

Could it be that the IFA concerned maximised commissions before the 1

per cent world took effect?

The other aspect of this which Kenmir has strenuously denied is the

suggestion that he wants to get rid of IFAs – particularly small

IFAs. It seems that the allegations were correct all along and

companies like mine cannot any longer look to the FSA to protect us

and thereby protect the valuable service which we are providing to

our clients.

I agree with the LIA&#39sJohn Ellis. “I think it shows an astonishing

degree of complacency about the situation at a time when it is

extremely worrying.” Where did common sense go?

Malcolm Baxter

Director, Baxter & Lindley,

Tring, Herts


Britons fail to guard against loss of income

Optimism about the future is falling but there is little sign thatthe public is doing anything to guard against any potential loss ofincome that could affect their standard of living.Research for Scottish Provident reveals that the number of Britonswho expect their standard of living to improve over the next 10 yearshas dropped to 52 per […]

Pat Meehan

L ondon and Bristol-based IFA Holden Meehan has seen steady organicgrowth over the past 17 years. After starting out with just PatMeehan and co-founder Peter Holden, the firm now boasts 25 RIs and abook of high-net-worth clients.Holden parted from the company four years ago and Meehan has clearideas about the firm&#39s future strategy, based on […]

IFAs &#39struggling to stay afloat&#39 in tide of legislation

Employment law firm Peninsula is warning that changes in workplacelegislation could cause difficulties for financial advisers alreadyoverloaded with administration.Recent legislation includes changes to maternity and paternitypractices and those for families adopting children.The law firm says Trade and Industry Secretary Patricia Hewitt&#39splans to cut red tape surrounding advisers&#39 financial records havealso failed to instil confidence in […]

Rock set to white-label Pru equity-release plan

Prudential is believed to be close to a deal with Northern Rock whichwill see the Pru white-labelling the bank&#39s equity-release productand selling it as its own.As reported in last week&#39s Money Marketing, the Pru is believed to belaunching into the equity-release market poss-ibly by the end of thismonth.Rather than designing its own product, the Pru […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm