View more on these topics

Tories in plans to remove regulatory millstone

The Conservatives are looking to draw up radical proposals aimed at lessening the regulatory burden placed on advisers.

John Redwood, MP, who chairs the Tories’ economic competitiveness policy group, says a combination of too much regulation and the fear of future reprisals has produced “particularly undesirable results for the IFA community”.

Speaking at a meeting with the IFA Defence Union last week, Redwood said drastic measures are needed to deal with the extreme growth of regulation, much of which he claimed is unnecessary, self-defeating and contradictory.

Wokingham MP Redwood said he has been deluged by a “Niagara” of correspondence from IFAs since the policy group was formed but it is time for advisers to come up with solid recommendations to remove barriers.

He said the regulator’s main job should be to protect the public from predatory businesses, with areas such as best advice and appropriate products “very much a sec- ond-order issue”.

Redwood said that by expending so much energy trying to protect the public from themselves, the FSA is getting in the way of many people looking for advice and caveat emptor has “a lot to recommend it”.

He said a Tory Government would not dismantle the FSA, as it sees no need for a raft of complicated legislation and “institutional architectural destruction”. But he said the Conservatives will be working on an radical agenda focusing on further differentiating retail and wholesale regulation and investigating adviser regulation in other countries.

The economic competitiveness group will report next July but is looking to start formulating a series of concrete proposals from early next year.

Redwood said: “I do think we need something radical to deal with the extreme growth of unnecessary regulation which is sometimes contradictory and self-defeating and damaging to IFAs.”

Recommended

Rogan’s spicy fare

Gartmore’s global focus fund run by Neil Rogan is a hot performer, achieving a 20 per cent gain over the last three years from a concentrated portfolio of strategic and tactical holdings

Administrators in at SRB

Special Risks Bureau has gone into administration following its acquisition by Risk Placement Services. RPS bought the niche insurance brokerage for an undisclosed sum last month in a deal that saw it take on SRB’s assets but not liabilities. RPS deputy managing director Geoff Tresman says it will honour any claims going through but any […]

Bear building

Could we really see a bear market develop in residential property in this country? Such an event is not without precedent. In the early 1990s, house prices fell – in some areas by as much as one-third. The reason for dwelling on this unnerving prospect is that in the US we have seen disappointing sales […]

House prices up 1 per cent in August says Halifax Price Index

Halifax’s house price index recorded a one per cent rise in August although it pointed to a slowing price growth rate in the market.The index also revealed that in August house price inflation fell from 9.2 per in June to 8.2 per cent and the group expects the trend to continue over the next few […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment