Monday, August 30, 2010

Government wants to cut business red tape with 'one in, one out' pledge | Mail Online

Government wants to cut business red tape with 'one in, one out' pledge | Mail Online

There is an entire public sector gravy train creating red tape, the people creating legislation and regulation thrive on it, we would need another industry to cut the red tape, we can't afford any more public servants!!

Homebuyers could be forced to pay bigger deposits in plan to cap mortgage lending | Mail Online

Homebuyers could be forced to pay bigger deposits in plan to cap mortgage lending | Mail Online

Good grief, another knee jerk reaction to the mess created by the regulators, the controls in place before the 1980s were insane, the lending binge of the 2000s created by securitised lending practices copied from the US was insane, now we see another period of insanity before us! Society is in dire need of regulatory balance, I see none.

The UK needs long-term lending stability which allows people with aspirations to own their home, this is not a solution it is a future problem, but of course by the time this carbuncle has festered sufficiently the politicians and policy makers will have moved on leaving the rest of us to suffer the consequences of policy on the hoof.

Thursday, August 26, 2010

MM Leader: Don't make IFAs scapegoats in Keydata blame game | Opinion | Money Marketing

MM Leader: Don't make IFAs scapegoats in Keydata blame game | Opinion | Money Marketing


If IFAs can be made scapegoats by anyone then that is what will happen because their representative bodies are either toothless or penniless, something the fund managers do not worry about too much.

The FSCS declaration that Keydata was an intermediary is one of the most irrational decisions I have seen in all my years of observation of all things FS. I wonder what the judiciary will make of it now that the New Labour thumb is not in its jugular.

As far as the FOS is concerned it will award as much compensation as it wishes, as one adjudicator once said to an IFA "I can do whatever I want" and "you will be getting a reputation".

Be afraid, be very afraid.

Friday, August 20, 2010

FOS issues landmark ruling against N&P over Keydata - Citywire

FOS issues landmark ruling against N&P over Keydata - Citywire

In my humble opinion all advice relating to the offerings of Keydata, MDF (sorry NDF) and many other manufacturers of 'structured products' could be unsuitable, even the FSA leaflet before me fails to mention the 'counterpaty' risk.

My argument is simply this, if the likes of Lehmans, Northern Rock, Bradford and Bingley and all the other financial cadavers littering the financial services market place fall over the FOS can look at something and say the advice was unsuitable because the risks were not fully explained when the regulator itself failed to spot the dead parrot..

Is that fair and reasonable?

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

Why bother with regulation when all we need is a great big compensation pot?

FOS issues landmark ruling against N&P over Keydata - New Model Adviser® Edition - Citywire

FOS issues landmark ruling against N&P over Keydata - New Model Adviser® Edition - Citywire

How does this fit in with the court case against the FSCS?

And, if the FSCS struggled with proving that Keydata was liable for the losses created by a third party how then can the FOS find an IFA (N&P for example) liable for that same loss?

There are many aspects of all this that Gareth and his firm Regulatory Legal do not appear to be covering, Anthony Speaight QC has been instructed to represent the IFAs in the High Court and he said to me "I would naturally be delighted if there is a fresh opportunity for us to be involved together again".

#comments

#comments


I used to be one of the loudest voices asking for the regulators to be better qualified in financial services advice than those they regulate. Having met senior people at the FSA I don't think qualifications are entirely relevant in a supervisory situation but do worry about how many 'trends' they fail to spot, this might mean that although they know what a file should contain, what systems and controls should be in place and what a dodgy set of accounts looks like they are unable to reach a fully informed opinion based on practical experience of what constitutes suitable advice, which might mean more cases get to the FOS and the FSCS in future, which in turn means the compensation machine grows like Topsy.

This week there are 66 jobs up for grabs on the FSA website, if you think their job is easy and all you need is FPC 1 and 2 then you are welcome to apply!

I was deluded enough to believe (so was Chris) that I could do a good job at AIFA, I didn't even get an interview!

Thursday, August 5, 2010

Long-stop appeal is rejected | News | Money Marketing#commentsubmitted

Long-stop appeal is rejected | News | Money Marketing#commentsubmitted


Mike Fenwick | 5 Aug 2010 11:49 am

I often read comments about what are considered to be the failings of the FSA, but for me perhaps the issues surrounding the lack of a long stop must rank near the top of that league of regulatory failings.

The FSA have been given extensive legal powers, have recruited large numbers of highly paid staff, it has in many ways an unlimited budget ... and yet, and yet.

And yet, despite all of that - and more - when it comes to their ability to recognise failings in the markets which they regulate, it is not 3 years that they need, nor is it 6 years, nor is it 15 years.

Do the abilities of the FSA run so low that they must determinedly stick to their assertion that they need - forever?

Does it reveal an important lesson?

I would suggest it does - and I wonder if that apparent failure, the need to take forever to perform a regulatory function, to take forever to ascertain failings in the market, could in any way be described as being in the public interest.

Not convinced?

Then perhaps ask yourself if ... whilst denying the regulated a legitimate claim to the legal rights granted to others - why the FSA were given a unique exemption from the rule of law for their own failings?

You sure that is truly in the public's interest?

Wednesday, August 4, 2010

Aifa says IFAs should seriously consider restricted advice | News | Money Marketing#commentsubmitted

Aifa says IFAs should seriously consider restricted advice | News | Money Marketing#commentsubmitted


I don't believe in "restricted advice" or "simplified advice".

Consumers need comprehensive independent financial advice from people they trust, nothing else is 'advice', period.

Just as a bad will is worse than no will at all I would contend that in general no advice at all is better than 'sales' dressed up as advice, restricted, simplified or any other name the providers and banks dream up.

Monday, August 2, 2010

New Model Adviser® survey reveals optimism for business in run-up to 2012 - New Model Adviser® Edition - Citywire

New Model Adviser® survey reveals optimism for business in run-up to 2012 - New Model Adviser® Edition - Citywire

Citywire (New Model Adviser) has an opinion which is supported by a few staunch supporters, how few? Let us assume (ASSofUandME) that 74% of 100 equals 74 such staunch followers, Out of the 60,000 Hector Sants' provided figures in front of the TSC that isn't entirely representative is it?

As far as the RDR is concerned I can see every argument for, against and any permutation thereof but I can't see how the 'consumer' benefits from this public display of quite disparate and heated opinion. How does it look from gound zero? A bunch of 'professionals' bitching and moaning, fighting for an imaginary moral higher ground.

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

And that goes for all of you! Regulators and their political puppeteers included...