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.”
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.
Matt Goodburn finds that Standard & Poor’s new sector classification for absolute return funds has split opinion in the investment business
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 […]
Chelsea Building Society
Ex Pat Buy-To-Let Fixed
Vincent Chailley, CIO of H2O Asset Management, discusses the key investment factors in 2016, including volatility, the disconnection between central banks and its implications on markets, as well as opportunities that may exist for investors.
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
Latest statistics show personal pensions, in particular, get a bad rap The recently published preliminary estimates from the Office for National Statistics’ Wealth and Assets Survey make for interesting reading with regards to how people view pension savings and how safe they are. The next round of this survey will be even more interesting in light […]
Beaufort Group is planning to add three more firms to its network with one deal expected to finalise next week. Chief executive Andrew Bennett says the other two small to medium-sized firms are expected to join “imminently”. In January, Beaufort Group added Statehouse Group as an appointed representative. The firm is now called Beaufort Financial […]
Significant gilt weightings continue to be recommended, despite concerning signals on their risk Government bonds play a pivotal role in a balanced portfolio; there are very few assets that provide the diversification benefits gilts can bring. So often over the last 30 years, when equity markets have zigged, bond markets have zagged, thereby smoothing return […]