View more on these topics

The problem is education and not regulation

The February issue of Which? magazine published a half-decent report on the “care home crisis” without mentioning high increases in indemnity insurance premiums directly arising from its pursuit of the compensation culture.

It is a grave disservice to consumers to pretend that unlimited compensation claims are unrelated to other areas of consumer interest such as care home closures.

The same issue offers a good guide to the small claims court without suggesting that all compensation claims below £5,000 should be heard before a district judge.

This would unravel all claims based on false evidence supported by retrospective regulation.

Future Governments of an illiberal nature will use the precedent of the FSA overruling Lautro&#39s six-year rule on record retention to act against the liberties of the individual, with serious consequences for every consumer lifestyle. Justice should prevail over consumerism.

It is reported that Prudential&#39s chief has said that one-third of all its payouts go to lawyers (Anthony Hilton in the Evening Standard), which is an indication of how far the consumerist culture of blame and litigation has taken root and backs up Brian Foster&#39s recent letter in Money Marketing.

The end result of 17 years of regulation, consumerism and Treasury interference has been the disappearance of companies and intermediaries, leaving consumers stranded, faced with high fees for advice.

Nearly all endowment and pensionholders have funds to choose among but no one to guide them on which to select or how. Whereas Which? once suggested premium increases, it now goes for compensation, with a ready market among those cast adrift without free service.

Current Which? advice concerning money market, UK gilts or property is welcome and demonstrates that the problem all along has been education and not regulation.

We have single-issue consumerism leading to single-issue regulation trumpeted by a media trusted by only 25 per cent of the public (European Commission, issue 51, spring 1999), with Which? joining the circulation battle without following through where its advice finally leads.

Roy Bennett

Hackbridge,

Surrey

Recommended

&#39Revenue plan will mean Isas first, pensions later&#39

Inland Revenue proposals to relax payments into pension schemes means people will pay into an Isa first and a pension later, taking advantage of the best tax relief, say industry experts.IFAs predict that the Revenue&#39s proposal to allow contributions of 100 per cent of salary with an annual cap of £200,000 up to a lifetime […]

Product matters

For clients wanting to take some risk, the NDF protected income plan 1 offers a very attractive rate of income for the level of risk to capital.As this plan was priced before the recent interest-rate cut, the annual income level of 7 per cent for five years (or 0.54 per cent monthly income) seems even […]

Edinburgh offers classic Pep solution

Edinburgh Fund Managers has established the Classic Pep transfer that provides investors with access to four Edinburgh funds. This product follows in the footsteps of the Classic maxi Isa and allows investors to choose Edinburgh performance portfolio, Edinburgh fund of funds portfolio, Edinburgh managed growth portfolio or Edinburgh monthly income portfolio funds. Edinburgh performance portfolio […]

Barclays Private Clients International – HI-ILDA 5

Monday, 10 February 2003 Type: Guaranteed equity bond and high interest account GUARANTEED EQUITY BOND Aim: Sterling version &#45 growth linked to the performance of FTSE 100 index, US dollar version &#45 growth linked to the performance of S&P 500 index Minimum-maximum investment: £5,000, $9,000-£500,000, $900,000 Term: Five years Interest rates: Sterling version &#45 7% […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com