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.

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