Monday, June 28, 2010

FT.com / Companies / Financial Services - FSA supervisory chief to quit

FT.com / Companies / Financial Services - FSA supervisory chief to quit: "While Parliament is not expected to act until 2012, the regulator will spend this autumn considering how best to split up its functions and then reorganise into two units in early 2011. The shadow period is expected to help the regulator iron out problems before they are codified in law."

A big job? But how can they predict what Parliament intends?

FT.com / Companies / Financial Services - FSA supervisory chief to quit

FT.com / Companies / Financial Services - FSA supervisory chief to quit

Some dead wood on the way out? The C&G used to be something special.

Friday, June 25, 2010

New FSA regulations to offer protection to vulnerable homeowners | Mail Online

New FSA regulations to offer protection to vulnerable homeowners | Mail Online


Too little too late Lesley?

If mortgage providers had been 'supervised' adequately at outset we might not have found so many 'serious issues' of late.

Society needs proactive regulation, and regulators, rather than the reactive 'point, fine, ban' we have seen for the last 25 years.

Society needs regulatory balance, I see none.

Knee-jerk regulation is pointless and a waste of public money, telling people the industry pays is misleading eveyone concerned.

Tuesday, June 22, 2010

FTAdviser.com - Banks and regulation: Darling speaks to FTAdviser

FTAdviser.com - Banks and regulation: Darling speaks to FTAdviser

Dear Mr Darling

Regulation as we know it is bust, it is 30s style knee-jerk reactionary regulation and it doesn’t work, how do we know this? Look at the mess around us, there is more evidence than a rational man would need.

Regulation by legislation is flawed, it creates holes where the unregulated activities undertaken by the greedy and unscrupulous impact upon everything else, take mortgages for example.

If a radical overhaul of regulation from the ground up isn’t forthcoming under the current administration we will be repeating ourselves at regular intervals of five or ten years.

As far as learning lessons is concerned how many failures have we seen since the FSA was created in 1985? Society needs balanced regulation, I see none

Friday, June 18, 2010

Sants: City banks still taking risks

Sants: City banks still taking risks

Spot on Hector

Policing the city: Lawyers predict a menu of confusion after Chancellor re-slices the cake

Policing the city: Lawyers predict a menu of confusion after Chancellor re-slices the cake

Lots of huffing and puffing from 'experts' without any offers of alternative solutions. I agree that yet more upheaval and uncertainty leaves us wide open to more of the same but while there is nothing like perfect regulation, to date we have not seen anything like perfect regulation. Unfortunately it is the lawyers who cause the problems by drafting up the flawed legislation which empowers the regulators, then we have individual regulators who couldn't catch a pig in a poke because they are financially and intellectually outgunned by the ones they are asked to supervise, they argue that they don't have the necessary 'tools' which again is down to this flawed legislation.

Until financial services is regulated from the bottom up instead of the top down we will be going in ever decreasing circles.

Wednesday, June 16, 2010

They won't miss the FSA | Gavyn Davies | Comment is free | The Guardian#end-of-comments

They won't miss the FSA Gavyn Davies Comment is free The Guardian#end-of-comments


A long gone senior FSA manager told me the FSA was a cobbled together mishmash of the old regulators, the 740 BofE staff ruling the rosst on the top floor with the PIA in the middle and the Friendly Societies in the sub-vault with none of them communicating with each other.

Can anyone explain to me what will change? What has regulation 30's style done for Great Britain? It got rid of the Great in Britain.

Unless the regulators are completely independent of political influence we will face another upheaval within ten years. The financial services industry is tired of being a political football, mind you I would like to see some banker heads being used as the proverbial bags of wind they most definitely are.

Tuesday, June 15, 2010

Cowdery goes it alone to cut banks’ fees#comments#comments

Cowdery goes it alone to cut banks’ fees#comments#comments


The life office rats are deserting the over regulated UK market, there are billions of suckers in 'emerging markets' which are, by and large, unregulated which is why the Man from the Pru wanted a piece of AIG. If we export all our regulators to Asia we could spoil their game, then we could get on with the job of resuscitating what we have left in the UK after strangulation by regulation.

FTAdviser.com - UK consumers prefer cars and jewellery to pensions

FTAdviser.com - UK consumers prefer cars and jewellery to pensions



We know this already, that is why pensions need to be SOLD and the person with sufficient talent to persuade them needs to be amply rewarded for his SELLING skills.

When will the political muppets admit that they failed?

The Park Row debacle shows regulation is out of control | Opinion | Money Marketing

The Park Row debacle shows regulation is out of control | Opinion | Money Marketing

Just had a thought, during one meeting with the FSA it was suggested to me that 'networks provide a service', it also appears that many, if not all, appointed representatives believe this is so.

The networks have been quite clever; it started with Ken Davy when he proudly announced that the regulator agreed we could replace "Appointed Representative of" with "Member of" on our stationery, this was supposed to look better and set us apart from the appointed reps of the life offices.

I believe there is a fundamental misunderstanding on the part of the FSA, the Appointed Representatives Regulations have been quite clear since 1987 where the responsibility lies for all acts or omissions, all training and competence, it lies with the network and not the AR so for the FSA to penalise an AR for doing what the network’s compliance manual told him to do is seriously flawed and unfair. When every piece of business is monitored by networks I find it incredible that the regulators can prevent a former AR from trading forever after.

Monday, June 14, 2010

Who would want to run a cut-down FSA? | Business | The Guardian

Who would want to run a cut-down FSA? | Business | The Guardian: "The FSA, after its humiliations, finally sounds like a watchdog to be feared. There is a risk that its improvements are lost as officials switch desks to fit the new chancellor's model. Osborne, if he is serious about fighting the next financial battle rather than the last, must also address that worry head-on."


Fear of the regulator is not a panacea.

At the end of 2009 I might have agreed that there were the shoots of improvement but in 2010 it has been a catalogue of disasters with regulators so desperate to keep the good ship FSA afloat that they lost the plot.

There are a number of serious risks the regulators have failed to see because they are looking in the wrong direction, I told them about two of them but the typical overreactions demonstrate that the regulator is rudderless.

Sunday, June 13, 2010

FT.com / Comment / Opinion - How to implement a systemic risk policy

FT.com / Comment / Opinion - How to implement a systemic risk policy

I would prefer to see criminal sanctions for the directors and officers.

BBC - Peston's Picks: FSA to become Bank of England subsidiary

BBC - Peston's Picks: FSA to become Bank of England subsidiary

Let's start with the 740 BofE people who were moved over to the FSA and lost their gold plated pensions, who pays to reinstate them? Or will they carry on pretending to be 'independent' regulators in an independent regulatory environment? They can't fool us!

Unless the regulators are independent of government and therefore outside the influence of politicians and ministers I can't see any of this working any better than any previous version has since regulation as we know it was created in 1985 by the then government which was Conservative. Does that need some punctuation?

The Board of the FSA is appointed by HM Treasury, "What, all of them?", yes all of them. The BofE Board is also appointed by HM Treasury, yes all of them. The FOS Board is appointed by the FSA and approved by HM Treasury, same goes for the FSCS.

I agree with Robert Peston, it doesn't sound sustainable or even plausible.

Friday, June 11, 2010

FSA managing director of risk quits | News | Money Marketing#commentsubmitted#commentsubmitted#commentsubmitted#commentsubmitted#commentsubmitted

FSA managing director of risk quits | News | Money Marketing#commentsubmitted#commentsubmitted#commentsubmitted#commentsubmitted#commentsubmitted

We pointed out a 'risk' the FSA hadn't spotted despite being around since 1985! Yes that's TWENTY FIVE years since the FSA (nee SIB) was created by the then Tory government.

There are more 'risks', bigger 'risks', but I'm not going to show them the way for no recompense ever again, they take the proverbial. I'll write it all dwon and give it to someone who will post it to the government after I am dead. It may be a bit dramatic but the last few weeks have brought back my frustrations at the ineptitude of the regulators. They appear to be wearing cloth ears again.

Wednesday, June 9, 2010

Punishing BP investors is in nobody’s interest - Times Online

Punishing BP investors is in nobody’s interest - Times Online: "City watchdog stays tethered"

The FSA recently set up a 'financial crime' unit, was this as a direct result of our meetings? If so, and the timing is too close to be a matter of consequence, you have to wonder what the regulators have been doing since the FSA (nee SIB) have been doing since 1985.

FSA bans insurance brokers for embezzling client funds | News | Money Marketing#commentsubmitted#commentsubmitted#commentsubmitted#commentsubmitted

FSA bans insurance brokers for embezzling client funds | News | Money Marketing#commentsubmitted#commentsubmitted#commentsubmitted#commentsubmitted

Dear Mr Osborne

Please don't view this as an example of the FSA doing its job, I know why this unit was set up.

Unfortunately the FSA can only catch the tiddlers in their 'shooting fish in a barrel' modus operandi, the other barrels haven't been found and never will, the regulators will never find the real crooks any more that they will stop insider dealing.

You have the opportunity to do something positive, don't waste it as previous governments did.

But I won't be holding out much hope because the vested interests have your ear.

Sunday, June 6, 2010

Rogue traders cash in as watchdog flounders - Times Online

Rogue traders cash in as watchdog flounders - Times Online

"Critics believe the FSA’s failure to tackle established bankers and traders is partly due to the fact that it is funded by the banking industry. There are also concerns about the expertise of some of its lawyers."

Correction: The FSA is UNDERFUNDED by the banking sector which means it can't afford the proper resources (decent lawyers included) to do the job, until the big players pay proporionally far more for supervision the FSA will continue to pick off the smaller firms, just like the police who find it far easier to make a fuss about fining ordinary people for speeding the FSA publishes 'success stories' such as banning a small IFA for failing to pay his disproportionately high fees.

Society is in dire need of regulatory balance, I see none.