View more on these topics

Lawyer’s warning to advisers over Newcob changes

Advisers need to ensure that they are fully compliant with the changes to Newcob introduced to coincide with Mifid so as not to open themselves up to legal liabilities, says leading financial services lawyer Simon Morris.

The CMS Cameron McK-enna partner says he believes advisers are being too complacent about the changes that will take place on November 1.

He says financial promotions, duty of suitability and issues around inducements are three areas where advisers need to ensure they are abiding by the requirements.

Morris says by breaking the Newcob rules, advisers are opening themselves up to the threat of legal action from clients if things go wrong, something which is also the case with the current Cob rules.

But he believes there is a big threat that advisers are not fully aware of the rule changes and could be exposing themselves to future problems.

Morris says: “My worry is that advisers are not fully aware of the liability they could be opening themselves up to by not ensuring they are compliant with the Newcob rules when they come into force in November. This is not just about keeping the FSA happy but ensuring your firm is not exposing itself to future claims against it by clients through the Courts or the Ombudsman.”

Recommended

First national Sesame conference to focus on the RDR

Sesame is to hold its first national conference in December focusing on the impact of the retail distribution review, the rise of wrap and other regulatory matters.The event, called Sesame Symposium, will include speeches from Aifa chairman John Gummer, former Which? chief policy adviser Mick McAteer, Standard Life chief executive Trevor Matthews and FSA director […]

PBR: IHT threshold doubled to £600,000

Chancellor Alistair Darling has announced that the inheritance tax threshold will double from £300,000 to £600,000 from today for all married couples including those in civil partnerships.Speaking in his pre-Budget Report, Darling said that as of 2010 it would be raised to £700,000 and would be backdated for widows and widowers indefinitely.He rubbished Conservative proposals […]

Little movement in lending for August

The Council of Mortgage Lenders says total gross lending was broadly flat month on month in August at £34bn compared with £34.1bn in July. However, lending for house purchase is down by 11 per cent compared with last August.

Show me the money – earnings are central to performance in Europe

Equity markets globally currently remain vulnerable to sharp shifts in sentiment caused by either unexpected or unwelcome outcomes in key upcoming political events (the US and German elections, Brexit and the Italian referendum). These top-down influences, combined with the current low global growth environment, will likely lead to broadly directionless markets, and prolong the current low beta return environment. We do, though, […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment