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We need an investigation into regulation

Both I, and no doubt many fellow IFAs, will have sympathy with the comments made by Gary Butcher (Money Marketing, November 28) in his round condemnation of the Financial Services Act.

Indeed one of the biggest scandals to ever hit our industry and, of course,the one that will never be investigated, is that of financial services regulation.

It will never be examined to see what it has cost, what it has achieved and just how directly contributory it has been to the loss of thousands of jobs in the industry, not to mention the demise of the odd insurance company.

In addition, we now have a ridiculous scenario in this country, whereby people who were allegedly missold, are actually better off than those who were not.

Like Gary, I too see an endowment review as being inevitable.

I believe that, having made the insurers send out millions of letters, the regulator would prefer there to be significant numbers of complaints in this area to avoid the accusation of being responsible yet again for making insurance companies spend millions of pounds of policyholders&#39 money, unnecessarily.

A colleague of mine has recently received a mortgage endowment complaint form from an insurance company and I am amazed, although not totally surprised, by the document.

The questions in the form are worded in a way which positively encourages him to lie his way into compensation for bad advice.

It is my understanding that the wording of these questions will have to have been approved by the FSA prior to use.

I suppose, however, that what I find most disappointing in all of this is that the industry has made no attempt to defend itself or even try to fight back over these issues.

Most of us are used to politicians being incompetent and misguided, but to give in to such stupidity when collectively you have the industrial muscle to simply refuse to do so is, to my mind, unforgiveable.

Regulation is one of the few growth industries left in this country and, having appointed these policemen, remember they need crimes to solve. If there are not any crimes, then inevitably they will go on inventing new ones to justify their continued existence and expansion.

This is very much now a case of a vested interest, masquerading as a moral concern.

Stephen Pacitti

Partner,

SKD Financial Services,

Aylesbury,

Buckinghamshire

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