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Tough stance on market abuse

Lord Adair Turner has promised to be more aggressive in tackling market abuse.

At a Treasury select committee meeting last week, chairman John McFall, MP, asked Turner how committed he was to addressing the problem.

Turner said: “I have a very strong commitment to tackling market abuse. I think we all know it is a difficult thing to prove. Quite a lot of market abuse and insider trading throughout the world goes undetected because it is inherently difficult to detect and get prosecutions in that area but I think we need to increase the aggressiveness of the way we look at that issue.”

Turner was also asked if he would be looking at the role of credit-rating agencies. He said: “There is a proposal with the European Union as to whether we should get into the process of registering and overlooking rating agencies, so that will undoubtedly be on the list.”

McFall raised the issue of inherited estates, highlighting Prudential’s decision not to proceed with reattribution despite the select committee’s publication of a critical report on the subject. He called on Turner to give serious thought to the committee’s recommendations for a new regulatory framework.

The FSA is due to report back in the autumn on the matter.


Cost controls

Much has been written about the move that most advisers are taking towards servicing models and passive incomes and the challenges that manufacturers face regarding balance sheet erosion due to distribution cost. The generally accepted solution is a product with less initial and increased trail commission but this is in danger of creating problems as great as those it is designed to serve. I am talking about the cost of providing this solution to the consumer in this new model way of working.

Winning service

“The first thing you will need is a wrap service,” an IFA friend told me. So I typed wrap into Google and was offered a choice of accessories from Monsoon or a Mexican wrap with spicy sausage.


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