The simple reason why the FSA is going to continue to allow the use of past performance in the selection of a particular fund is that it has been unable to come up with anything better. Another fine waste of time and our money.
As for Ken Clarke's pledge to clip the wings of the FSA, should he ever be elected to a position from which he can wield such influence, this is missing the point.
What the industry needs is a competent, cost-effective, efficient and, above all else, accountable regulator targeting selectively (not to mention accurately) the activities both of companies and individuals which truly do need regulatory attention.
The present regulator is none of these things and everyone knows it. At the moment, it is just a black hole for other people's money.
About the only good thing which may come out of the Equitable Life debacle is that those who let it happen will somehow or other have to be brought to book – or will they?
WDS Independent Financial Advisers,