The correspondence we are starting to receive from product providers regarding the money-laundering regulations under the FSA is a further indictment of:
The failure of financial regulation to date.
The danger of non-practitioners making regulations.
The weakness and failure of the regulated to stand up to the regulators and use that simple word: “Why?” The answer that it is in the rules is simply not good enough.
Jupiter tells us “that fund providers can only rely on client-verification certificates provided by an IFA is the IFA submits to the provider copies of all the verification evidence it has obtained and it satisfies the provider's own verification criteria”. Why?
Fund providers and IFAs are regulated and authorised under the financial regulations. If an IFA certificate is not adequate, it implies that regulation of IFAs is not adequate.
God help us if that is the conclusion after all the years of cost and bureaucracy that we have been subjected to.
Zifa informs us that a birth certificate is no longer an acceptable form of personal identification but, thankfully, building industry sub-contractors' certificates, UK armed services ID cards and firearms certificates are. But what about our clients who do not construct scaffolding to carry out their roles as army snipers?
Do not be cynical about non-practitioners making rules, I hear you say. But what about clients who are housewives, who do not drive or travel abroad – a much more likely example? How can they produce their passport, a driving licence or a P60?
Why, oh why, is there so much waste and stupidity in this industry? Why? Because there is an unaccountable regulator. It can only get worse unless more people learn to stand up and say: “Why?”
Malcolm Guy Yorkshire Financial Clinics,Keighley, West Yorkshire