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.”