View more on these topics

Tory report calls for new “regulatory court” in radical shake up of FOS complaints process

The Conservatives’ Economic Competitiveness Report has recommended a radical shake-up of the claims process for financial services including a new “regulatory court” for retail consumers and more focus on caveat emptor.

The Report, published today, suggests the Shadow Cabinet looks into the merits of a new form of regulatory court- akin to the small claims court- for consumers to complain to instead of the Financial Ombudsman Service.

The report also calls for a feasibility study to be carried out into how a “plain English responsibility warning could be incorporated into consumer contracts, warning consumers that they are responsible for their own actions and requiring them to acknowledge this in some way”.

It confirms a proposal, first floated by group co-chairman John Redwood at a Money Marketing roundtable last year, for a consumer disclaimer for sophisticated investors to allow them to buy unregulated products at their own risk, with no adviser responsibility.

This would mean investors would receive no protection or compensation. “We would then be able to see how much experienced investors do value and want regulation,” the report says.

It recommends a Conservative Government uses the powers of the Financial Services and Markets Act to conduct a review of whether the FSA is using guidance giving powers to best effect in assisting firms to comply with regulatory change.

The heavily trailed report also advocates the repealing of mortgage regulation, axing IHT on primary residences, scrapping Hips, ending forced annuitisation, lessening regulation of final salary schemes and creating a flexible lifetime savings account.

Launching the report, Shadow Chancellor George Osborne said: “The policy group report we launch today is the most impressive and comprehensive analysis of the state of the British economy produced by any political party in recent times.

“And the report offers us a set of imaginative policy proposals directed at improving the competitiveness of our economy, rescuing our pension system and ensuring that more Britons and more parts of Britain share in the global prosperity of our times.”

Recommended

John Jory

The former Allied Dunbar director has spent the last 10 years helping construction workers lay down firm foundations for their retirement with pension provider B&CE. Having built up one of the most successful stakeholder pensions in the industry, he is unconvinced that personal accounts will prove a better product and is concerned at how lack of education has left the public fearful that pension saving could actually harm their prospects in retirement. Interview by Will Henley

Franklin Templeton launches three Sicav funds

Franklin Templeton Investments has announced the launch of three new Sicav funds within its Luxembourg-domiciled Franklin Templeton investment funds range.

C&G creates new £99 upfront fee

Cheltenham & Gloucester will be introducing a £99 upfront fee for mortgage applications from August 23.The lender was one of the first to scrap its £225 exit fee prior to the FSA’s July 31 deadline.Once the £99 has been paid it will be valid for 12 months so the borrower will not be charged it […]

Providers vow to bounce back

Money Marketing asks providers to justify their service levels and explain what improvements may be planned for the future. Axa Axa says its bottom position in the rankings reflects problems the firm was having with the introduction of its new individual pension product range at the time the survey was carried out. It says it […]

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