Sunday, November 28, 2010

Friday, November 26, 2010

Treasury Select Committee has turned into a tiger - Telegraph

Treasury Select Committee has turned into a tiger - Telegraph

A few months ago the TSC was a laughing stock, now it is the powerful regulator of regulators we have always needed.

Long live the Treasury Select Committee, no longer the governemnet puppet.

Have faith in Andrew Tyrie and the members.

Thursday, November 25, 2010

'FSA never wanted to ban interest-only' | News | Money Marketing

'FSA never wanted to ban interest-only' | News | Money Marketing

Sheila, it should be a matter for the lender and the borrower to decide what terms are suitable, it would be really wonderful if the regulator was independent and took little notice of what HM Treasury hands down to them for implementation after the banks fall down a hole.

The problem was wholesale funding, a wall of money looking for a home, if this had been stemmed early on by the regulators the mess we see before us now might not have been so immense.

Wednesday, November 24, 2010

Sants: RDR will not lead to third of IFAs exiting the profession - Citywire

Sants: RDR will not lead to third of IFAs exiting the profession - Citywire

The problem with 'systemic control' is that you need to be able to spot 'trends' and to move quickly to guide the participants in these areas very early on and not wait until all you have to deal with is the aftermath. A prime example is the wholesale funding of lending which overheated and was there for all to see yet nothing was done for reasons unknown. There are many other trends which have been developing and are apparently still not on the regulatory radar, well I can't see any evidence to show that they are under scrutiny.

As far as the method of remuneration which is agreed by the adults who are party to the advice process is concerned I don't see how things will dramatically change, there are many ways to skin a cat as the saying goes. Yes there have been problems with firms who focus on generating commission but these can be 'trends' as mentioned above, in many cases that I spotted the problem was provider influence and the greed of the firms that have since folded and their liabilities have ended up on the backbreaking burden of the FSCS, those providers are unlikely to return to their old ways for a number of reasons, extinction being one of them. I predict another trend, or two, caused by the RDR which will lead to consumer detriment, I may be wrong but I am not the only one who can see this, my Scottish friend is the 'oracle' of financial services, he predicted all this mess back in 1985, yes he spotted all the 'trends' back then, his favourite cartoon is Snoopy lying on top of his kennel saying 'nobody listens', it is my favourite too, spooky! I believe nobody listens because it isn't what they want to hear.

We can only hope that the next regulatory environment is more effective than what we have experienced over the last two and a half decades.

Monday, November 22, 2010

IFAs must not take FSA authorisation decisions lying down | Opinion | Money Marketing

IFAs must not take FSA authorisation decisions lying down | Opinion | Money Marketing

When the FSA wrote to the sponsoring firms saying they were refusing to accept the proposed AR they also said that if the applicant went to the RDC and it found in favour of the FSA the register would show this forvere, a 'BAN' if you like, I considered that to be a form of blackmail.

The FSA has lost the plot, will the next reincarnation be any diferent? I doubt that simply because the same people will simply be wearing a diferent badge.

There is another way but the architects of the previous failed regulators are feathering their nests onec again by assisting the new government in designing a 'new' structure.

Saturday, November 20, 2010

Principality calls for balanced approach from FSA - Business News - Business - WalesOnline

Principality calls for balanced approach from FSA - Business News - Business - WalesOnline

Well done Principality, I wish more lenders would speak out.

The FSA is only following orders handed down by HM Treasury before the change of government, it was a knee jerk reaction to the banking crisis which was created by wholesale funding, that is all over now but the FSA is misguided because what it says, or even merely implies, pushes lenders to the fringes, away from risks, away from the type of consumers who in the past have benefitted from the flexibility afforded by sensible lenders, lenders who are now suffering the collateral damage caused by irresponsible lenders. In the end it is the consumer who loses out.

Society is in dire need of regulatory balance, I see less each day.

Thursday, November 18, 2010

FSA: "We have listened on RDR" | News | Money Marketing

FSA: "We have listened on RDR" | News | Money Marketing

Listening is making an effort to hear something, what you do after you have heard it is another matter altogether, whether you understand what you hear impacts upon the decision you arrive at, if some of what you hear is louder than anything else you hear it can influence the outcome.

In my humble opinion you may have listened but you didn't hear it all in a way which would ensure you arrived at a balanced and logical conclusion.

Tuesday, November 16, 2010

Sesame Bankhall slams "intrusive" FSA | News | Money Marketing

Sesame Bankhall slams "intrusive" FSA | News | Money Marketing

Comment copied from elsewhere:

He said: “We have an intrusive regulator that has been criticised, broken up and rebadged; a regulator accused of failing in its duties when needed most.”

Hoban takes advice from a string of bankers, advisers to bankers and former FSA officials.
The word is "rebadged" and just look at how the old school is designing the new school.

His nine strong team includes:

Michael Foot, former FSA managing director;

Carol Sergeant, chief risk director at Lloyds Banking Group; and

Nick Prettejohn, former Prudential UK chief executive.

Davide Taliente, partner at Oliver Wyman,

Simon McGuire, former vice chairman of UBS's investment banking division,

Jonathan Herbert, former head of European law at the FSA

Amanda Harvie former chief executive of Scottish Financial Enterprise,

Teresa Perchard, director of public policy for Citizens Advice; and

John Tattersall former chairman of financial services regulatory practice at PwC.

NB: Foot, Sergeant and Herbert are all ex FSA, Tattershall is the former boss at PWC when Hoban and Chris Cummings were both there, Sergent, Taliente and McGuire either bankers or advise bankers.

This is a small club and guess who’s not in it – the IFA! The sum total of this groups reads to me like a pro RDR, FSA and banking club.

NOW DO YOU UNDERSTAND WHY THEY WANT TO KILL THE IFA OFF?
**********************

No idea who compiled this list, I only know the first one and he is bad enough, ask the IFAs who have met him.

Regulation is bust because the same people redesign the same wheel over and over again, the crises get bigger and bigger.

FTAdviser.com - Hoban calls for financial services to "reconnect"

FTAdviser.com - Hoban calls for financial services to "reconnect"

Are you proud of your regulators Mr Hoban?

PM pledges to stand up for financial services 'at every turn' | News | Money Marketing

PM pledges to stand up for financial services 'at every turn' | News | Money Marketing

Are you proud of your regulators Mr Cameron? Therein lies your problem.

Friday, November 12, 2010

Get a sense of reality | Opinion | Money Marketing

Get a sense of reality | Opinion | Money Marketing

Mike Fenwick | 12 Nov 2010 2:20 pm

An article which includes words or phrases such as "IFA militant tendency" and "loonies" and attaches such descriptions, without qualification, to all of those who are interested in whether RDR is fit for purpose and who seek to question it, is in itself calling into question the honesty and integrity of such individuals.

A point which I suspect may have escaped you, Nic, and is very worthy of your consideration imho.

May I remind you of something you said on the 23rd July this year.

"What I’m hearing is that, yes, the regulator’s internal discussions recognise the RDR proposals will affect the number of consumers able to obtain independent financial advice in future. We all know why that might happen, so I won’t discuss it here."

Is it in any way suitable to describe as "loony" those who have genuine concerns that RDR will, if unchallenged, diminish the consumer's ability to obtain independent financial advice?

That article also included these extracts:

"Lansons director of regulatory consulting Richard Hobbs told a conference in London the FSA “considered scrapping the RDR at a board meeting in March but decided to push on with plans for fear of losing face”."

"Hobbs claimed: “I have to say, it only just survived an executive committee meeting in March at the FSA. The FSA are not particularly proud of the RDR but it is a question of losing face, so I think they will carry on.”

I don't know this, but I suspect the more recent interest of MPs in the subject of the RDR has as much, if not more, to do with the consumer interests I mention above as it does to the future of IFAs, and even were my suspicions wrong, the two are undoubtedly connected, and negatively, not positively, affected by RDR.

The dire economic circumstances we all find ourselves in at present, and for the forseeable future had many causes, but it cannot have escaped your notice that there was a complete failure of effective regulatory process.

Is it therefore in any way "loony" to question and challenge those whose failure is a matter of record, and whose failure is now simply left for everyone else to foot the bill?

Or is it with the very sense of reality that you claim to seek that they should be challenged every step of the way, to attempt to ensure that what follows is not a repeat of the past?

RDR proposals which do not enhance, but quite openly and deliberately diminish the abilities of the consumer to obtain independent financial advice should be challenged, and alternatives found - not least because it is the very failures of the regulators who have left us with an economic mess which has increased the need for just such advice.

Well done Mike

Thursday, November 11, 2010

Wednesday, November 10, 2010

FSCS spent £280,000 on Keydata judicial review | News | Money Marketing

FSCS spent £280,000 on Keydata judicial review | News | Money Marketing


Since I began my fight for fair play back in 2002 many very eminent people outside the industry have gone from being dismissive of my claims to being quite shocked that such unfairness can exist for only one chosen vocation in a country which prides itself on justice being seen to be done.

Yes Hector, these issues of unfairness need your urgent attention.

Tuesday, November 9, 2010

FOS case may be heard in European Court of Human Rights - New Model Adviser® Edition - Citywire#448158

FOS case may be heard in European Court of Human Rights - New Model Adviser® Edition - Citywire#448158

CirrusPilot

If you were a regulated person prior to October 1998 you were given a choice, to sign your rights away or to walk away which many did after reading what Gordon Brown's lawyers had put forward, no trade body or adviser outcry then was there? No furore as the Financial Services and Markets Bill went through 1,200 amendents in Parliament and not a peep when the Henry VIII clause was added at the last minute.

One of the few people who was genuinely concerned about all this was the current Chairman of the Treasury Select Committee, in my humble opinion he remains the only person who will side with reason.

One adviser firm has an opportunity to be heard by the European Court of Human Rights, another is due to find out soon whether it too will be heard.

If only I had been allowed the time and money to make a difference, unfortunately IFAs expect these tasks to be carried out in someone else's time with someone else's money, that is their downfall, well one of them, another is their inability to work together.

Homeowners to become ‘mortgage prisoners’ under FSA lending rules plan - Personal Finance - Business - WalesOnline

Homeowners to become ‘mortgage prisoners’ under FSA lending rules plan - Personal Finance - Business - WalesOnline

If Wales obtains 'more powers' could it be in charge of its own regulation? Smaller countries do well from having their own financial regime so come on Welsh Assembly Government, show us how it could be done.

Saturday, November 6, 2010

One in ten pensioners still going out to work to pay the mortgage | Mail Online

One in ten pensioners still going out to work to pay the mortgage | Mail Online

This is misleading, do over 65s or anyone else for that matter receive rent-free accommodation? No they don't, what is the difference between a mortgage, iterest only or otherwise, and rent?

The regulators and their political masters are going make a complete hash of everything with their MMR, and the RDR, and anything else.

Thursday, November 4, 2010

Housebuilders and lenders criticise FSA as likely to create 'mortgage famine' | Business | The Guardian

Housebuilders and lenders criticise FSA as likely to create 'mortgage famine' | Business | The Guardian

This is an example of New Labour government policy being handed down by HM Treasury for the FSA to implement. It is a knee-jerk reaction to the hysteria which followed the collapse of Northern Rock and other lenders who lost the plot under the watch of the sleeping regulators.