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Simply Biz applauds Tories – calls for RDR delay

Simply Biz has applauded the Conservative proposals to scrap the FSA and is calling for the regulator to temporarily suspend its “far reaching, radical and expensive RDR proposals”.

Chairman Ken Davy says: “The announcement that the Conservatives propose to abolish the FSA is a welcome breath of fresh thinking which I believe will benefit commerce and consumers as well as the whole of the financial sector.

“Ironically this is not because of the abolition of the FSA itself but rather the much clearer focus the new structure will bring to the issues of financial stability and consumer protection.”

Davy says giving the Bank of England responsibility for financial stability combines the Bank’s experience of the key issues with the authority to manage them and should be welcomed.

He says: “Equally, a strong new Consumer Protection Agency with a focus on transparency and including things like the sometimes horrendous cost of credit for many consumers is much more than changing the name above the FSA’s door and is an outstanding innovation.

“It should be noted that these proposals combined with the certainty of a general election in less than a year shine a spotlight on the RDR. Particularly the unseemly haste with which the FSA is trying to steamroller the far reaching, radical and expensive RDR proposals through.

“I repeat my call for the FSA to pause so that the full implications of the RDR on consumers can be properly considered and researched. Such a pause would also enable the grossly underestimated costs of the RDR to be fully examined and any changes linked in with likely EU legislation in 2014.”

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Comments

There are 8 comments at the moment, we would love to hear your opinion too.

  1. RDR Delay
    Too right Simply Biz! Well said!

  2. Richard Russell 20th July 2009 at 5:12 pm

    Scrap the FSA
    Think of the time and money it would save. Enough to turn me into a Tory!

  3. Stanley Holmes 20th July 2009 at 5:27 pm

    Simply Biz applauds Tories
    Ken Davey’s comments once again reflect the pragmatic approach he takes to the overall financial goverance abroad today. I believe he should be consulted by whichever party wins an election as to the future format of the reglatory functions. I would add that just to change the title above the FSA Offices is not sufficient, it requires a complete clearance of the existing managent and staffing structure as there could be more of the same under a new guise.

  4. RDR Delay
    Name any other Industry that has to jump through hoops & loops like Financial Services? We keep getting told that we have to gain consumer confidence again? What figures/information is being used? Are complaints within FS now below 3% with the majority of those compliants are with the banks? I believe its forecast that more then 50% of IFA’s will fail to achieve the required qualifications but what financial support is in place to help such advisers especially as in most cases business is well down. They only people I can see who are gleefully rubbing their hands regards RDR are the likes of theCII…say no more! Not everything we do in our industry is wrong, infact we do a lot of things very well. Lets for once have support for the advisers out there by delaying the RDR for further research etc to make sure we get it right for all.

  5. Julian Stevens 20th July 2009 at 6:02 pm

    Simply Biz applauds Tories – calls for RDR delay
    I’m not sure that scrapping the FSA is the right way forward, given that nobody’s suggesting scrapping regulation. Who will staff the CPA? Most likely, those who work presently at the FSA, as there is hardly a large pool of experienced regulatory personnel from any other quarter on which to draw. Root and branch reform of the FSA would, in my view be better, not least an end to the mendacious pretence that the FSA is anything other than a government body (fsa.GOV.uk) staffed by people who are allowed to get away with breathtaking profligacy on an almost criminal scale at the expense of the industry. Regulation needs to be made more accountable and more cost effective. Merely establishing a new regulatory framework may very well not achieve that or anything like it. But at least the Conservatives, if nobody else, are making serious noises about at least doing something to bring the FSA to heel.

  6. well done ken
    brilliant ken well done and well said ! we are all with you!

  7. Abolition of FSA
    Regulation should not be subject to political opportunism. The Tories set up SIB to replace City regulation which was thought to be not tough enough, SIB was then thought to have failed in a number of ways no-one had foreseen, Labour then trumped SIB with FSA which in turn has now apparently been deemed to have failed. The cost of all this indecision must be immense! About time someone outside politics and vested interests came up with a regulatory scheme which will not have to be replaced every time we have a change of Government!! I wonder if the Bank would have done any better than FSA in the current crisis – its record pre FSA was not exactly brilliant, but I guess that judgement is informed by hindsight too!!

  8. RDR
    Oh oh warning- dinosaur approach to change on the horizon!! Far reaching change is absolutely needed in the intermediary sector and only non-client centric organisations are against the key thrusts of the RDR those of clarity, greater professional standards and the de-link between provider control through commission and stronger relationships between advisers and clients

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