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That&#39s another fine mess…

The compensation scheme&#39s system of payments is in a fine mess. The question is, who got us into it? Is the regulator playing Oliver Hardy to the providers&#39 Stan Laurel?

Maybe. The bills for this fatal showdown between IFAs and the FSA over non-payment of their compensation scheme levy have not reached all advisers. Some invoice batches are still to go out so it may be impossible for many IFAs to meet this deadline despite the threat of having to pay interest or arguably the more hollow threat of losing their licences.

Second, it appears that providers took a unilateral decision to cap the amount they would stump up for the scheme this year, driving up bills dramatically and leaving advisers with a nasty surprise.

Finally, the Pass scheme, which administers payments to IFAs from the providers, may have been left to wither on the vine and may not even be able to cope with the limited amount that providers were due to pay this year. Money Marketing, at this stage, can only appeal for flexibility. It would be helpful if the FSA had a rethink on what may well be a very punitive stance.

It would be helpful if providers thought again before they pulled the rug out from under their main distribution channel. They should remember that their alternative strategies for getting their products to market are not yet proven.

Finally and possible most importantly, someone ought to be telling the Govern-ment that the regulatory system, including the FSA, the Ombudsman and the Compen-sation Scheme, is shafting the current distribution system and its replacement will be an awful lot worse. But for the moment, some compromise from Canary Wharf and the providers would be welcome.

This is a fine mess but, unlike Laurel and Hardy&#39s escapades, not a very amusing one for advisers.


Ghiloni&#39s parting shots

What is this we hear? A certain Mr Francis Ghiloni, the departing sales and marketing director at Britannic Asset Management, had no less than five, yes five, leaving dos. One for everyone at Opus, a popular Glasgow drinking joint, three for various teams at the business although we hear the compliance team did not get […]

Nvesta – Secure Multi-Tracker Plan

Type: Guaranteed equity bond Aim: Growth linked to the performance of the FTSE 100, S&P 500 and Nikkei 225 indices Minimum-maximum investment: £3,000-£2m, Isa £7,000 Term: Six years Return: 110% growth in the indices Guarantee: Original capital returned in full regardless of performance of indices Closing date: October 22. 2004, October 15, 2004 for Pep/Isa […]

New cars popular choice for lifetime mortgage customers

Norwich Union Equity Release says buying a car is one of the main reasons older people take out a lifetime mortgage. Twenty eight per cent of people releasing equity from their home are spending at least some of the money on a new car according to NU. Director Mark Kelly says: “Having a car is […]

Roo the day

Rumour has it that the arrival of the Intelligent Finance team bus at the England football team&#39s Hertfordshire headquarters was fuel for a familiar joke among the players. The Diary hears that when granite-jawed star Wayne Rooney, also known as Shrek, asked what Intell-igent Finance meant, team-mate Kieron Dyer replied “You wouldn&#39t understand, Wayne.” But […]

To be and not to be – Multi asset investing with conviction

At Pictet Asset Management we believe active management of asset allocation is the most important generator of returns. What is not to be in our portfolio is just as important as what is to be because good performance is determined as much by the assets you avoid as by those you hold. The FP Pictet Multi Asset Portfolio managers are not wedded to any particular […]


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