Sunday, March 27, 2011

No win, no fee firms eye mis-sold mortgage compensation market | Money | The Observer

No win, no fee firms eye mis-sold mortgage compensation market | Money | The Observer

"Citizens Advice also advises homeowners to think twice before unnecessarily signing up with a claims company. "Up until 2008 we were seeing lots of evidence of irresponsible lending – people being lent mortgages they could never properly afford and unsuitable lending with people being given products that weren't necessarily right for them – and a lot of the problems were driven by intermediaries," says Citizens Advice's social policy officer Peter Tutton. "It was only a matter of time before the claims management industry started moving in."

An FOS spokeswoman points out that its complaints service is free if a consumer has first made a complaint to the lender or intermediary but is unhappy with the response: "Consumers don't need to pay to get their complaint resolved. If they choose to use a claims company, or other third party, the ombudsman service will deal with the complaint in exactly the same way."

If only it were so simple. Many people are unaware of the problem.

http://www.saverjustice.co.uk

Thursday, March 24, 2011

The cost of advice - and what you need to know - Investing Strategy - Mindful Money

The cost of advice - and what you need to know - Investing Strategy - Mindful Money

I joined the financial services in 1985, it was like the Wild West back then!

Naively I welcomed regulation in 1987, I thought it would get rid of the cowboys but they rode on by as if nothing had happened.. I should have read what Mike Fenwick was saying, so should everyone else.

The rest is history.

I tried to defend IFAs via the IFA Defence Union, many were indefensible. Now I am regulated by the Ministry of Justice in respect of regulated claims management activities, consumer detriment is big business and I know this one inside out, I hadn't realised how big until recently. Around half of the claims I handle are against advisers who are already RDR compliant, they charge fees, they have all the qualifications but they still make a hash of it.

The regulators tell me they don't have the 'resources' or the 'tools' to do the job so they keep making new rules and regulations with yet more gaps, unfortunately the incompetent, the negligent and the downright unscrupulous will carry on as before.

In my ever so 'umble opinion the only thing the RDR will do for consumers is reduce choice, for me it will be easier to find more large cases than before. I am grateful for the work but I feel sorry for the consumers, particularly those who fail to complain or have their complaint fail without just cause.

Wednesday, March 23, 2011

FSA chief Hector Sants sees pay package soar | Business

FSA chief Hector Sants sees pay package soar | Business

How will the FSA staff be integrated with the BofE when they earn so much more?

Break-up plans force FSA to accept limits - Business News, Business - The Independent

Break-up plans force FSA to accept limits - Business News, Business - The Independent

Head count 4,000!!! Good grief, there will never be enough adept regulators to do the impossible, preventing consumer and taxpayer detriment that is, they may mean well but they can't see the wood for the trees. For example, it is sad that they feel so unpopular that all visitors have their bags scanned for weapons and explosives, until recently they hadn't thought about the possibility that such items could be hidden on the person. Sums it all up really.

Regulation as we know it is doomed to failure time and time again, we hear that lessons are learnt but we see no evidence other than more and more rules and regulations, and the gaps in between.

Anybody remember the Snoopy cartoon? "Nobody listens"

Thursday, March 17, 2011

No silver bullet to prevent financial crises, says FSA chairman Lord Turner - Telegraph

No silver bullet to prevent financial crises, says FSA chairman Lord Turner - Telegraph

Is regulation the cause of financial crises? We see regulation (and regulators) increase in number daily while each crisis gets bigger than the last one. So, what is the point of it all? It doesn't seem to matter how big or how powerful the regulator is it can't stop the crises. I am sorry to have to disappoint you Adair but it hasn't worked, it isn't working and it won't work because you don't listen, hence the "Collective Intellectual Failure" described by Clive. Where is he now?

I thank you for supplying people like me with new business, consumer detriment will be paying my bills until I breathe no more

What next for the FSA? - Telegraph

What next for the FSA? - Telegraph

Unless they replace the Financial Services and Markets Act 2000 I can't see how it will work effectively, all sticky tape and elastic bands. It is a badly drafted Act which was thrown together in panic, 1,200 amendments with little Parliamentary scrutiny and at the 12th hour guess what..... a Henry VIII clause! And what is more it is in conflict with other legislation...

Sunday, March 13, 2011