Regulation of financial services was introduced in this country in 1986. The remit of the regulators was to protect the consumer and what a brilliant job they have done. Today, a once thriving and successful financial services industry has all but been brought to its knees.
The policy of the regul-ators has been akin to the treatment for cancer. Hit the body with the most toxic of poisons and if the body is strong enough, the cancer will be killed. If not, tough on the body. Should the trend continue, the public will be protected very efficiently because there will be no financial services industry.
The FOS is hounding me, a sick and retired IFA, for two FSAVC cases written in 1990. Last year, the FSA’s understanding of pension schemes was exposed when 125,000 would-be pensioners lost their occupational schemes. The FSA had published leaflets telling the unfortunates that their pensions were guaranteed.
The FOS case is that final-salary occupational salary schemes are guaranteed but they do not say who guarantees the pension schemes and how is the guarantee paid for. Were they guaranteed, the cost would be so prohibitive that pension schemes would be unfit for purpose. To you and me that is obvious but to the regulator, such a concept has not appeared in FP3 syllabus so they ignore it.
I reported the FOS to the police for perverting the course of justice. After all, if there are no guarantees, there can be no losses. The police wrote to the FSA, who said perverting the course of justice is not a crime for members of the FSA staff.
My view is that the FSA is not the body to decide who has committed a crime, nor can they put their staff above the law. What a sorry mess we have created to leave to our children and grandchildren. I remember being told that we had the greatest legal system in the world. Poor world.
Late of Boyd & Associates,