View more on these topics

What’s the story?

Treating customers fairly is top of firms’ radars and we can all just about quote the six consumer outcomes but it appears that principle-led regulation will be no more.

The new framework will carry the snappy title “the intensive supervisory model”. If I ask Money Marketing readers what areas of current supervisory regulation they dislike, I imagine many will pinpoint the regulator’s supervision concentration on making sure appropriate systems and controls are in place and reliance on management to address the issues.

Applying regulation supervision in this way can cause frustration as some firms have great systems and controls but never use the output to help improve the customer experience in areas such as complaints, disclosure and report writing.

Some IFAs still work off paper and PC files and provide a fabulous personal service to the community with high levels of suitable advice but they may not score well on the FSA’s list of what makes a compliant intermediary due to the lack of rigorous technology. Current supervision is based on what the regulator can see there and then and does not widen the scope of activity to delve into business strategy.

One of the big FSA aims is to help retail consumers achieve a fair deal. In my mind, this means inherent product and provider default risk and the future performance must be built into supervisory activity. Trying to look wider at firms and also into the future might well help consumers get a fairer deal. The FSA has previously used the phrase “credible deterrence” and Sants emphasised that this involves the full use of criminal prosecution powers.

In the past, the focus was on ensuring there was adequate management information and controls in a firm. In the future, the FSA will concentrate on outcomes testing with more and better staff available. This will involve better use of mystery shopping and branch visits. This switch to outcomes testing is also central to the delivery of “credible deterrence”. All this sounds eminently sensible but feels like a heap of extra work for regulated companies.

May I ask if we are to get a cost benefit analysis soon or sight of any consumer research establishing what consumers think is a fair deal?

Kim North ( is founder of Technology and Technical


Furore as wrap chief says there are only 5,000 credible IFAs

Advisers have reacted angrily to Nucleus boss David Ferguson’s claim that only 5,000 of the 30,000 IFAs working in the sector can be deemed “credible”.Ferguson says this means that new players in the wrap market have a very limited audience because most of those “good” IFAs have already committed to a platform.He says: “There are […]

On thin Isa

The Isa will be 10 years old in just under a fortnight but I am not so sure there will be much to celebrate. Sales have fallen sharply in recent years, relegating the Isa season to nothing more than a sideshow.

Key themes for 2017

Capital Market Notes, December 2016 Dave Lafferty, chief market strategist at Natixis Global Asset Management, assesses the accuracy of his 2016 outlook and provides his thoughts and outlook for 2017. Click here to read the full article


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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