View more on these topics

Sesame Bankhall calls on Osborne to give savers a boost

Sesame Bankhall Group executive chairman Ivan Martin has written an open letter calling on the Government and the FSA to give the regulator a mandate to boost the UK savings market.

Martin (pictured) has penned an open letter to chancellor George Osborne and FSA chief executive Hector Sants which argues that the trend towards fewer IFAs in the market could be reversed if the new regulator was given a more progressive mandate. A link to letter appears to the right of this article.

He wants to see the regulator handed a new statutory objective to improve the UK’s savings ratio.

The move comes alongside the launch of Money Marketing’s Pave The Way to Save Campaign, which calls for a more constructive approach to regulation, including giving the new regulator an objective of increasing saving and protection levels.

In his letter Martin says: “The RDR has evolved to become a set of proposals focused on minising the risk of mis-selling. As a result we face the bizarre and unintended outcome where the only growth area will be regulation itself.”

Martin argues that in exchange for firms meeting higher professional standards and forgoing commission the FSA should award a regulatory dividend to reward quality firms.

He also calls for the government to “embrace the need to improve the UK’s savings ratio” and recognise the role that a strong advice profession can play in achieving this.

He adds: “The restructure of the UK’s regulatory system offers the opportunity to make this a reality.

“We urge the new coalition Government to grasp this moment and take an enlighted leap forward. It could help to break the cycle of spiralling debt and benefit millions of people for generations to come.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. “It could help to break the cycle of spiralling debt and benefit millions of people for generations to come.”

    Ha ha ha ha

    Yet another finance professional who is blissfully unaware of how money works.

    Savings = Debt. You cant have one without the other. They are a mirror image of each other.

    Increase savings by all means, but be aware that savings are created by loans. Therefore, we nede to find more people to lend to. And if your looking for interest on those savings, thenyou better hope all the borrwers are happy to pay the interest rates you demand.

    Sadly,due to demographic issues, there simply arent the mass of people of prime borrowing age (25-50) to support these savers.

  2. Grasping nettles and leaping forward sounds rather hazardous.

    Reminds me of a sales trainer who always referred to whoops we need to jump through-is this a variation?

  3. Taking this further, private wealth is equal to public debt. So if we all want to keep hold of there savings and we cant find the credit worthy borrowers to lend to, then we better hope govts around the world are happy to keep running up deficits on our behalf.

  4. “Work with us to design new, simpler advice models that improve access to advice for ordinary people.”

    The FSA have clearly forgotten all about “ordinary people” obsessively focusing on the very small market segment dealing with complex advice. 5 to 10% of the market at best.

    The vast majority (90% plus) of people do not need “complex” advice. They need simple, cost effective, tax efficient products which can be “sold” rather than expensively advised

    The solution : create simple regulated products which can be sold by the 30% to 50% of advisers who will leave post RDR. No need for fees, nor further exams – just simple products that can be sold off the shelf.

    True the public might do better by taking advice but it is doubtful if this segment will be willing to pay the ever increasing charges that the few remaining IFAs will demand.

Leave a comment