View more on these topics

Stop the bed-hopping

Editor’s comment of the week

What next for Hector Sants? After all, the cynics out there were correct in thinking that a big job would be lined up after the summer holidays with a bank or other financial institution for Margaret Cole.

But with so many high-profile FSA ex-executives having already pioneered this route, is there something rotten about such a journey?

After all, we should note that Government ministers are prohibited from working with companies their department may have had a relationship with for two years.

The advisory committee on business appointments, which looks at the position of all ministers who take up jobs after leaving Parliament, states: “Under the Ministerial Code, former ministers who want to take up any appointments or employment for two years after leaving office are required to seek advice from the advisory committee and must abide by that advice. Former ministers are asked to complete an application form.”

This protocol should apply to all those in high-profile regulatory positions, too, and it should be a high priority for the Treasury to put in place rules to stop such bedhopping, which has the potential for a commercial organisation to benefit from the possibly highly sensitive knowledge and intelligence that in this case Hector Sants has no doubt been privy to.

Derek Bradley
CEO PanaceaIFA.com

Recommended

1

NatWest Intermediaries restricts DA access to corporate range

NatWest Intermediary Solutions has temporarily stopped directly authorised intermediary firms from accessing its corporate range of mortgage products. The change, which took effect from yesterday, means DA firms will now only have access to the lender’s core mortgage range. The corporate range is now available only to appointed representatives of Sesame, Legal & General, Mortgage […]

5

Aifa: There is no advice without advisers

Recent discussions have confirmed my initial impression that the advice sector is valued but advisers are not. The Government and its agencies often see financial advice as a solution to problems. For example, the Government is looking to introduce a voluntary code to cover incentivised transfers from pension schemes, as it is concerned that members […]

7

Pru deputy chief Barry O’Dwyer slams FSA in email to staff

Prudential UK & Europe deputy chief executive Barry O’Dwyer has written to 2,000 staff slamming the FSA’s approach to policy-making, including its stance on legacy commission post-RDR. In an email, seen by The Sunday Telegraph, O’Dwyer says while the FSA’s new legacy rules are “not perfect”, some of the proposals the regulator put forward during […]

JP Morgan pauses low-cost fund drive after ‘tiny’ inflows

JP Morgan says flows into its low-cost UK active index plus fund have been “tiny” and it has no plans to launch another low-cost fund until inflows improve. The company converted the £64.3m UK active 350 fund into the low-cost fund on February 1, 2011 and it now stands at £70m. It has returned 4.5 […]

Scheme pays explained

By Fiona Hanrahan, senior product insight and technical support analyst We’ve received lots of queries on scheme pays and when it can be used. This article explains how it works and the conditions which apply. What is ‘scheme pays’? If an individual exceeds the annual allowance (AA) and an AA tax charge is due, they […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Wow, I thought there’d be at least a score of comments by now!

    This article correctly shows how rotten is the barrel.

  2. And exactly what risk do they pose to the FSA that means they have to have 6 months garden leave?

Leave a comment