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MP attacks Sants for not knowing grandfather stats

Treasury select committee member George Mudie has attacked FSA chief executive Hector Sants for not knowing statistics relevant to the issues around grandfathering.

In this afternoon’s TSC evidence session, Mudie asked if the FSA had statistics on how many advisers were over 60 and how many of those had a length of service profile.

Sants said he thought the statistics existed in the FSA but that he did not know them or have them to hand.

Mudie said: “You should have them, they should be in the back of your mind. You could be forcing 5, 50 or 500 over 60s to spend very valuable money on something that will take effect in two years and they will retire in three.”

He added: “You cannot tell me how many over 60s have been in the industry over 20 years and you cannot tell me how many have a trouble free record. You took a blanket decision, do you not think that is unfair and a reason to revisit grandfathering rights?”

Sants said he would write to the committee with the statistics and would “give consideration” in the letter to the points raised by Mudie.

After further questioning Sants said he thought the figure might be 10 per cent.

Follow our tweets from the TSC meeting here.

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Comments

There are 33 comments at the moment, we would love to hear your opinion too.

  1. He did not know because he could not care less!

  2. the mans an idiot, he doesn’t know and doesn’t care!

  3. Get real Hector. I think you’ll find the figure of those who will over 60 and with more than 20 years in the industry by the end of next year is more like 30 to 40%.

  4. The reason he does not know is has allowed junior staff to make all the decisions. He is an arrogant man who has run an institution that has completely screwed up the financial sector. He seems to think that banks are the only thing that matters in this world regardless of the total lack of TCF shown to ttheir customers

  5. Graeme Trinder 9th March 2011 at 5:04 pm

    He is not interested in maintaining experience and is just too comfortable to care.

  6. I would not say the man is an idiot. He has achieved a high position and one would not have done so by being an idiot. He may lack information required but this is poor planning and preparation.

  7. Incompetent Regulators Awards Team 9th March 2011 at 5:07 pm

    Sants is an odius LIAR!

  8. Why a politician should attack Sants (whrn the RDR has been handed down from the EU anyway) is stupid and obv for brownie points. For someone who has 3 years left until retirement should be left out of taking an exam is beyond me as they then may continue working indefinately in the industry. Considering I will most likely have a state retirement age of 70, I would stop complaining and get on with it. Despite your experience, you are not above the rules.

  9. michael brayne 9th March 2011 at 5:10 pm

    I will be 60 this year and I’ve been in this business over 30 years, so I’m one.

  10. What about people that are in their 40’s and have been in the industry for 16 years does that not count !!!

  11. Anon 5.07pm

    ‘I would not say the man is an idiot. He has achieved a high position and one would not have done so by being an idiot.’

    Our institutions and large companies are full of idiots in high positions. In UK plc and UK gov being talented is not the top criteria for getting on.

  12. Well it’s history as far as I’m concerned. I’m 60 this year and decided a couple of years ago that there was no way I was going to spend the next few years taking exams that will only be relevant to me for a further few years.

    I stopped advising clients on 1st March.

  13. What came across was the fact that the FSA is an unelected quasi judicial member of the executive and as Andrew Tyrie (chairman of TSC) said immune from actions in negligence and immune from acts of gross negligence i.e. being recklessly stupid over the outcomes of it reckless stupidity! It was for the FSA to be accountable to the TSC and not for Sants to ask for the TSC to be accountable to the FSA. Throughout the hearing Ms Sheila Nichols held an inane grin on her face and was reprimanded for this. One MP said: Ms Nichols do you find this amusing because my constituents don’t! Sants was dismissive over the destruction of individuals and careers and hinted that level 6 was next!

  14. I have over 30 years in the business but I’m not 60 yet, should I not be grandfathered (ps I am a grandfather).

  15. I also have over 30 years in the industry and have some way to go to 60 and am a father but not a grandfather. What rights have I got???

    On a serious point – the lack of a 15-year long-stop is an absolute disgrace. In theory, my wife and I could lose our home twenty or thirty years into retirement

  16. Dear Anonymous at 5.08pm, This RDR is nothging to do with the EU. Theirs is still to come!

  17. and did we miss the sleight of hand? He includes advisers unaffected by RDR as they dont do investments and claims an attrition rate of 10%.

    He then fesses up to losing over 6,000 advisers – as they will be almost exclusively current IFAs that 6,000 in 18,000 – 30%

  18. Funny wasnt it? He was all for accountability and tightening of regulation on individuals, but look when it came to him being accountable for his work!!

    He does not miss a beat when it comes to applying pressure to others but when it comes to being responsible for his own actions?

    Disgusting. He does understand banking and maybe should be involved with banking, Nicholl knows nothing, she couldnt add weight to anything and clearly demonstrated that there were no facts or figures to back up even one of her or Sant’s comments.

    A farce.

    No wonder one or two MPs became agitated.

  19. To Anon at 5.08 pm

    – whose literary standards leave a great deal to be desired and whose stridency would suggest a bureaucratic background: Rules are for fools and the guidance of wise men (and women).

  20. The man IS an idiot.

    You can go far in this world by licking *** or knowing the right people – you don;t have to be clever or ethical. Indeed, many people who have ‘made it’ have achieved their position by being completely unethical.

    All that said, I have been Diploma qualified for 16 years, have an unblemished 19 year track record, am 62 years old and yet I have to gap fill. I’ll do it – but under protest. Morons and self-serving idiots like Sants should be ashamed of themselves for being so ill-informed whilst making far-reaching decision that will impact on IFAs and, more importantly, a million clients.

  21. Not a bad start a left to the ribs and a little egg on the face!!!!!

    Lets hope it turns nasty and forces him to reveal how they have arrived at all their mis-guided assumtions!!!!!

  22. Just to add to Garry Heath’s point, statistics have already been released showing as at last summer a reduction of 11% of the adviser population.

    Let’s also add in the support staff who will also be booted out.

    Like Hector I will have a stab at the figure. I reckon that between 2007 and 2013 there will be an industry exodus of 20,000

  23. David Trenner - Intelligent Pensions 10th March 2011 at 8:45 am

    Agree with Anon 6.02. I have passed 19 professional exams and average 150-200 hours a year of CPD over the last few years. I can even speak at gap filling seminars for other IFAs, but I still have 48 gaps to fill according to the CII programme.

  24. Am I dreaming? We are in a recession. Unemployment is going up! The Government says we need to create jobs, reduce red tape and be more innovative to get this this Country out of the serious mess it is now in! and some Baffoons are talking about a reduction in IFA numbers.

    Any proposals that admit this and do not propose a 20% increase in numbers (minimum), should be ‘BOOTED TO TOUCH’ Incidentally, I’m 72, ex IFA with 22 years experience, 15,000 hours of CPD, never had a complaint, am also a chartered engineer, former senior Industrial manager, former member of the Institutue of Management and am now a management consultant. BUT CANNOT EVEN PROVIDE SIMPLE ADVICE, which my former clients are desperate to receive as they approach retirement or wish to re-mortgage. They cannot afford £100 per hour, let alone the estimated £220 per hour required to break even post RDR.

  25. Just to place this in context the telegraph produced an article which stated job losses in the UK had so far reached 50,000 in one year, this was across everything, steel, Philips etc etc so far.

    The MPs confirmed that Sants did not blink or was concerned at 10,000 jobs in this industry alone.

    One fifth of all jobs lost in the UK and he was not concerned, this shows how far removed these two are from reality.

    They have clearly never heard of the term ‘phased’ or testing theories before implementation.

    George Mudie could not believe what he was hearing and quite rightly became agitated, like us I felt he thought they had no respect for anything or anyone, with no concept of the gravity of their actions.

  26. George Mudie MP asked Hector Sants if RDR was a done deal. Yes came the Sants reply unless you can show the FSA evidence otherwise. George Mudie then said why is it that an elected MP and a member of the TSC is told by an unelected quango that RDR is a done deal when the elected body is still reviewing RDR. Mr Mudie further went on to say it is for the FSA to show the TSC evidence and not the other way around! Mr Mudie has hit the nail on the head. This is even more important than RDR, it is about the rule of law, human rights and democracy. There is no place in a democracy for an unelected legislator that is not accountable to the judiciary (as Andrew Tyrie pointed out) or accountable to parliament (as George Mudie pointed out).

  27. I am 58, with 40 years in the industry – does that make me a great-grandfather?

  28. a principles-based approach does not work with individuals who have no principles.”

  29. Anybody who knows me, will know my nickname. Anybody who writes under Anonymous, should not be printed, but like you I am hiding my real ID because we dread the power of the FSA. We only dread it because we do not trust them to use it fairly, in a relevant way, and truly believe that they are more interested in finding fault with IFA’s, than protecting the public from crooks throughout the financial services world, of which IFA’s are only a small part. My simple question is ,that with 40years in the life and pension and investment business, 25 as an IFA, with ACII exams, FPC 1,2&3, Level 4 ( hopefully next week ! ) no complaints, ever, what would happen re all of the advice I have given to date ? If I did not get level 4, could all of my clients sue me for not being a suitabley qualified adviser ? As I would be thrown
    out of the business as if I was incapable of doing the job. I have nothing against exams, but experience and first class track record should count for something.

  30. Why not introduce compulsory CPD paid for by the IFA until fully qualified. This safe gaurds the IFA ( at cost to him /her ) provides ongoing advice to their clients and provides an ongoing income to the FSA. This surely would encourage the IFA to get qualified and if he chose not to would at least be kept upto date with industry issues,concerns and Financial issues.

  31. As part of my Gap fill I am doing the CII online ethics course.

    Part of the course states that just because something is legal it might not be ethical.

    I think Mr Sants should try this course.

  32. Whenever we make a big business decision we have to typically consider Health & Safety, possibly the effect on the environment, employment law and rights and of course any TCF implications yet the FSA blatantly fails to do any assessment of the effect of the RDR on a profession where the average age of advisers is high. To disregard the impact of the RDR on older people is as blatant a breach of human rights as I can imagine. That is not to say that the RDR is wrong, but consideration should have been given to the impact on advisers and how the effects could have been mitigated.

  33. Sants and Nicholl were truly representative of a corrupt and failed regulator.

    We now find out that two of the original aims of RDR,(closing the savings gap and making financial advice more accessible to the public) have now gone completely out of the window!

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