View more on these topics

MP says don’t heap the blame on advisers for Arch cru losses

All-party Parliamentary group on Arch cru secretary Alun Cairns says the FSA should not hold IFAs so heavily responsible for client losses.

Last month, the FSA launched a consultation on establishing a £110m redress scheme for Arch cru investors.

If it goes ahead, around 795 IFA firms will have to review all cases and pay redress where advice was unsuitable. The FSA estimates up to 30 per cent of the IFA businesses could default as a result.

It comes on top of a £54m compensation scheme funded by authorised corporate director Capita and depositories BNY Mellon and HSBC.

Speaking to Money Marketing, Conservative MP Cairns says the FSA and the Guernsey regulator, which supervised the cell companies that invested the capital in the funds, should push Capita, BNY Mellon and HSBC for a better deal for investors. He says: “Holding IFAs responsible for the failures of many stakeholders regulated here and in Guernsey may not be wholly fair. I hope the Guernsey Financial Services Commission and the FSA bring about a negotiated settlement between all those firms responsible.”

Cambourne Financial Planning director Mark Loydall says: “If a third of these firms do default, it will be the innocent firms that pick up the pieces and that cannot be fair.”


Pension providers to cut guarantee periods ahead of EU gender pricing ban

Pension providers are considering slashing annuity quote guarantee periods ahead of the implementation of European rules that will ban gender pricing in insurance contracts. In March last year, the European Court of Justice ruled gender pricing for insurance products will be banned from December 21, 2012. The ruling, based on a challenge by Belgian consumer […]

Barclays to sell entire BlackRock stake

Barclays is to sell its entire holding in BlackRock through a registered offering and a related buyback by the asset manager. BlackRock has agreed to repurchase up to £632m in stock, conditional on completion of the offering. The stake, which represents a 19.6 per cent interest in Barclays, was acquired as part of the deal […]

FTSE blog: European markets continue sell-off

European markets continued to tumble on Wednesday extending the week’s losses following the failed coalition talks in Greece. At12.19, the FTSE 100 was down 1 per cent to stand at 5382.47. The German Dax was down by 0.9 per cent, however the French Cac 40 was up 0.1 per cent. The fall comes as the […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Julian Stevens 21st May 2012 at 9:23 am

    A “negotiated settlement” from the FSA? There’s about as much chance of the FSA negotiating over the legitimate interests of the IFA sector as there is of hell freezing over. The FSA enjoys statutory immunity from prosecution and a government endorsement of being accountable “only to its own board”. So where’s any incentive or imperative for it to negotiate on anything?

    Yet Hector Sants would have us believe that the FSA has no prejudicial agenda against small IFA firms. I rather think not.

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