Ukip MEP for Yorkshire and the Humber Godfrey Bloom has 40 years experience in financial services, including working as an investment manager and an IFA. He argues that as IFAs are not responsible for designing products, there is no reason for them to be regulated.
Bloom says the Financial Ombudsman Service can provide an avenue of recourse for consumers but the concept of caveat emptor must be reintroduced.
He says: “We know that by the time products come to the market they have been looked at over and over by the regulator, so we know that the products are sound. It comes back to caveat emptor and consumers taking more responsibility for their decisions.”
Bloom also calls for the FSA to be disbanded, arguing that it has “clearly failed”. He says the industry should start again with just six overriding rules rather than 400 that “do not work”.
He says: “The replacement body should be headed by people that understand the industry and have significant experience and they should be significantly less well paid than the current regulators.”
But Philip J Milton and Associates financial adviser Simon Marsh says regulation of advisers is important because their work is highly technical.
He says: “The reason we are here is that a lot of people do not understand the products. We are here to explain the process.”