View more on these topics

Panel claims the regulator’s tests are statistically useless

The FSA’s mystery shopping and thematic exercises have been condemned as useless by the financial services practitioner panel.

It claims that the small sample sizes used by the regulator mean there is little to glean from findings despite the FSA placing great emp- hasis on the results of its quality of investment adv- ice and equity-release advice surveys released this week.

The FSA has also been slammed by the panel for creating “second-tier regulation through the back door” through press releases, Dear CEO letters, speeches and good practice guides.

It says the quality of the FSA’s staff must improve and reiterated concerns expressed by the mortgage industry that the regulator is trying to get providers to police brokers via treating custom- ers fairly. The FSA says it will issue a formal response to the panel’s report shortly.

The FSA’s mystery shopping of investment advice sampled 50 firms. Consumer body Which? is sampling 60 firms as part of its mystery shopping into the quality of pensions and income pro- tection advice, with the results due to be published in September.

The FSPP says: “Regarding the release of thematic work and mystery shopping, there are anxieties over general conclusions being drawn from often small sample sizes that have little statistical relevance.”

FSA Compliance Consultants managing director Mazhar Manzoor says: “There is a real danger that results may be used to draw invalid conclusions, as sometimes sample sizes are inadequate.”

Savills Private Finance associate director Melanie Bien says: “Consistently bombarding consumers with information can be damaging.”


Savers’ safety fears in central scheme

An Association of British Insurers’ survey on pension personal accounts has found 60 per cent fear for the safety of their savings under a centrally administered NPSS compared with 47 per cent for an industry model. Eighty per cent want some choice over who administers their account.

Absolutely fabulous?

Matt Goodburn finds that Standard & Poor’s new sector classification for absolute return funds has split opinion in the investment business

Hearts of Oak

Eagle-eyed Lansonettes Jeena Nadarajan, Sarah Whelband, Charlotte Edgar and Laura Moss spotted Hollyoaks hunk Stefan Booth while at dinner with a MM hack. Cutting short a riveting conversation, they knocked over quiet diners and pushed aside waiters for a chance to be snapped with the top totty. Dazzled by the attention or perhaps a little […]


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