IFA Defence Union

FOS chief praises IFAs' complaints record - New Model Adviser® Edition - Citywire

2011-06-02T06:32:00.000-07:00

FOS chief praises IFAs' complaints record - New Model Adviser® Edition - Citywire

This is frustrating, words fail me.

The FSA complains about a lack of feedback, everybody will know that I have been one of the busiest commentators on the unfairness of rules and regulations created by the regulators, well intended of otherwise.

This particular example of unfairness has not received a response, why?

Evan

From: Evan [mailto:evan@.]
Sent: 28 April 2011 11:25 AM
To: 'Treasury Committee'
Cc: 'Hector Sants'; 'margaret.cole'; 'natalie.ceeneyinancial-ombudsman'
Subject: Regulatory gaps

Following the High Court win for common sense in the matter of banks and PPI sales the FSA rightly claims to be closing the gaps with the use of principles.

There is one more gap that the FSA should be closing immediately, this relates to mortgage endowment policies which have either been sold or surrendered and will never be time-barred because the 'guidance' given to the FOS does not clarify the situation when claims come in after the aforementioned events.

Firms cannot time bar a complaint because both events preclude the use of red letters and 'dates' as required by the FOS which slavishly follows FSA rules and guidance, this situation could in effect exist forever and involve retirees having to fend off complaints and pay FOS fees of £500 or more until the day they die, or even until their estates are dispersed after which any claims will fall upon the FSCS which does not recognise the 15 year long stop despite the fact that the Limitation Act has not been repealed.

http://www.ifadu.co.uk/15_Year_long_stop.htm

I hope this gap is closed very soon.

Selling out: Why everyone is paying for bad advice, the real fuss needs to be over FOS - Investing Strategy - Mindful Money

2011-04-04T02:31:00.000-07:00

Selling out: Why everyone is paying for bad advice, the real fuss needs to be over FOS - Investing Strategy - Mindful Money

I have every sympathy for adviser firms who feel they are paying for the acts or omissions of others but that is what they signed up for in 1998, the 'new' PIA contract was the precursor for the Financial Services and Markets Act 2000 and the one size fits all regulator. Many advisers left the industry rather than sign this contract and the firms which did and any firms and advisers who have become authorised firms since then have only themselves to blame because as was predicted in 1985 by Mike Fenwick this has in effect become your prison, you will eventually pay for damage done by others even if you never have a claim made against you. The bill for this is increasing each year yet the number of firms who share the burden is reducing, this situation can't last forever can it?

That is the nature of the beast you either put up with it or leave, you have a choice. If you stay you must get involved in designing the next regulator, all practitioners should get involved or else it will fail to meet the expectations of consumers and advisers alike just as the previous regulators have. Are the politicians, the elected Executive, happy with the failure of regulation on so many occasions?

I would also like to ask why we have claims in the first place, often it is because the regulators see something they missed previously, they point, fine and ban after the damage has been done. So, is it regulation that has failed society or is it the regulators, the people? Then we have investors taking more risk than they would if there wasn't a scheme established by government which 'guaranteed' recompenses for any losses.

It hasn't worked, it isn't working and it will never work.

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

2011-03-27T02:31:00.000-07:00

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

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

2011-03-24T04:17:00.000-07:00

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.

FSA chief Hector Sants sees pay package soar | Business

2011-03-23T09:49:00.000-07:00

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

2011-03-23T00:29:00.000-07:00

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"

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

2011-03-17T00:34:00.000-07:00

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

2011-03-17T00:21:00.000-07:00

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...

FT.com / Investments - Commission ban may not create trusted advice

2011-03-13T03:33:00.000-07:00

FT.com / Investments - Commission ban may not create trusted advice

Yes there is commission bias but there is a lso fee building, unless a client follows the recommended course of action the adviser earns nothing.

Investors charged rip-off fees - Telegraph

2011-02-27T13:51:00.000-08:00

Investors charged rip-off fees - Telegraph

20% of the capital sum went in commission?

I find that figure to be excessive in the extreme, no I would contend that your memory has faded or your forgettery has increased substantially in size.

If you have the evidence which supports your public statement please send it to Paul Farrow or retract the statement in its entirety.

No, seriously, I do accept your suspicions and the urban myths which surround, and cloud, the advice process but making sweeping tatements in public which are not based on the situation as a whole, as Alan Steel does quite regularly, is putting more doubt in the minds of people who might benefit from advice which is not a single shade of grey as is the case at a bank branch. It is unhelpful - unless you are promoting your own self interest of course.

Yes there is 'commission bias' but there is also 'fee bias' or 'fee building' as it is called. What is the answer? The government proposes 'simple products' without considering that such products can become very complicated if bought by someone who either doesn't understand them or more importantly doesn't really need them, particularly when their circumstances change in future as they surely will.

Fund management chiefs call for Keydata inquiry | News | Money Marketing

2011-02-25T03:59:00.000-08:00

Fund management chiefs call for Keydata inquiry | News | Money Marketing

There is no substitute for effective supervision, an ability to spot 'trends' early on and the the gumption (inc. powers and tools?) to move quickly.

To date the regulators have had limited resources aimed at perceived risks, they haven't had the correct tools for the job nor have they employed people with 'native' intelligence. They are like bomber pilots, they never see the full scale of the damage caused because they are too far away from the action.

Unfortunately I don't see much change happening under the FCA, I may be wrong but the future of regulation doesn't look too clever, if Mike Fenwick says it isn't going to work then I will agree wholeheartedly.

This should be built from the ground up.

Those to blame should pay the FSCS price | Opinion | Money Marketing

2011-02-15T03:42:00.000-08:00

Those to blame should pay the FSCS price | Opinion | Money Marketing

John Ellis, if this is the man I am thinking of he should know all about the theories of civil servants. They are just theories which often cause us problems in future by which time they are doing something else altogether, like enjoying their vast pension pot.

Mike Fenwick warned of this in the 80s and those in power at the time said they would 'keep the letter on record' which was absolutely the wrong thing to do, not listening is still not the right thing to do.

The number of people with opinions which are being published makes this paper look like a platform for professional complainers. Everyone is looking for a solution but they are looking in the wrong places!!

Four hard lessons from the Barlow Clowes scandal - Telegraph

2011-02-08T00:00:00.000-08:00

Four hard lessons from the Barlow Clowes scandal - Telegraph

What have we learned from Barlow Clowes and all the other failures which appear to increase in size at the same rate as the regulators do?

I don’t know about you but all the evidence suggests that regulation is bust. All the rules and regulations in the world are no substitute for effective supervision, an ability to spot trends and the gumption to move quickly in the right direction.

Until regulation works as we would expect it to we will continue to see ever larger failures

Rathbones faces £3.6 million FSCS levy hit - Citywire

2011-02-01T01:55:00.000-08:00

Rathbones faces £3.6 million FSCS levy hit - Citywire

If you were a self-regulator would you be any better or, God forbid, worse than the failed statutory regulator? By worse I mean more critical, more intrusive, more willing to push the button simply because what you see before you every day is so obviously in need of some effective supervision that you point the finger well before the regulators as we know them would be picking up the pieces, handing them to the compensation scheme, or the taxpayer, and doing the "point, fine, ban" after the event kind of regulation.

There is a concept called 'mis-selling', it isn't defined in any regulatory glossary. My definition is "compensation for loss howsoever caused", this is the system we see before us. The regulators want to educate consumers, I presumed this was to protect them from their own folly, but is it? During many years of personal research I have found that consumers are not as stupid as the regulators believe they are, I often wonder if the opposite is true!

As far as "raising standards" is concerned I can honestly say that yes there are some people who kan't spel or hold a two way conversation but they have been quite capable of passing exams in the past, no doubt they will pass the next lot, and the ones after that.

All the rules and regulations in the world are no substitute for effective supervision and a credible CPD system.

You, all of you, can make sure the next reinvention of the regulatory wheel is the final one. Some of you may not like what is possibly the most radical solution on the planet but it is simple, it would work from the ground up and it would be cheap. Unfortunately the regulatory job creation machine wouldn't like it either, too many people in well paid jobs dreaming up more and more ways to increase the burden of the 'pileometer', remember that?

Sorry about the incomprehensible rant, my simple mind has too much to think about today.

Lord Turner: banks face more rules and regulation - Telegraph

2011-01-30T03:22:00.000-08:00

Lord Turner: banks face more rules and regulation - Telegraph

Adair

I hope you will not be too disappointed to hear that I don't agree with you. All the 'rules and regulations' in the world are no substitute for effective supervision, an inate ability to spot 'trends' and the gumption to move quickly instead of ending up with the usual 'point, fine, ban' after the event regulation we have had to endure for two decades.

The UK has not been served well by the regulatory musical chairs, time for new blood and a regulator which is not influenced by politics.

Rocketing FSCS bills: advisers pay up to 780% more - New Model Adviser® Edition - Citywire

2011-01-25T08:17:00.000-08:00

Rocketing FSCS bills: advisers pay up to 780% more - New Model Adviser® Edition - Citywire

This has become your prison, Mike Fenwick said it would 25 years ago, nobody listened.

Blog: Will the FSA's product plans protect consumers? - IFAonline

2011-01-25T08:15:00.000-08:00

Blog: Will the FSA's product plans protect consumers? - IFAonline

All the rules and regulations in the world are no substitute for effective supervision, an ability to spot 'trends' early on and the gumption to move quickly.

Banks challenge PPI reclaiming in High Court

2011-01-24T23:25:00.000-08:00

Banks challenge PPI reclaiming in High Court

Where have the banks been all these years, retrospection is what this compensation machine is all about. However I can't see how what they did was acceptable at any time in history.

Was Barclays mis-selling? It's hardly a million dollar question - Telegraph

2011-01-23T03:21:00.000-08:00

Was Barclays mis-selling? It's hardly a million dollar question - Telegraph

Hi Paul

The only thing wrong with this piece is the title, it uses the word 'was'.

One more point, this isn't the exclusive preserve of Barclays is it?

Oh, a few more points, this wouldn't have happened if:

1. The FSA hadn't brought in 'depolaristation'
2. The FSA had more than six people supervising the bank.
3. The government at the time hadn't put pressure on the regulators to let the banks regulate themselves.
4. The FSA had been more proactive with regard to 'provider influence'.
5. Barclays had a decent 'risk consultant', me for example.

The rest is history, or is it?

I have a few cases here which could make headlines soon.

Judicial review is a symbol of discontent | Opinion | Money Marketing

2011-01-20T02:46:00.000-08:00

Judicial review is a symbol of discontent | Opinion | Money Marketing

This has become your prison, and theirs.

As in all prisons the inmates sometimes attempt to escape, is it morally acceptable so see the innocent ones try to be free of persecution and fail? Is it fair to give them a good kicking because 'we told you so', hindsight is a wonderful thing but it is the preserve of the regulators so stop whining and make sure the next incarnation of the regulator is fair and reasonable right down to the bone.

Who do you want to do that job this time around? The same old same old?

The FSA's flawed argument | Opinion | Money Marketing

2011-01-18T03:29:00.000-08:00

The FSA's flawed argument | Opinion | Money Marketing

From where I sit regulation as we know it looks like what would happen to Teddy if a child found a big box of elastoplast. Rulebooks cobbled together, rules added, deleted or amended at will when they don't work.

More and more rules are no substitute for effective supervision, an ability to spot 'trends' and the will to move quickly. Isn't that what regulation is all about? All we have is a compensation machine picking up the pieces after the houses of cards fall apart. A compensation scheme which encourages consumers to take risks they wouldn't normally consider, it has got so bad, or mad, that the FSCS is now advertising on MTV...

FSA's RDR data built on hills of sand | Opinion | Money Marketing

2011-01-11T01:49:00.000-08:00

FSA's RDR data built on hills of sand Opinion Money Marketing

If you poke a snake it strikes back. What we are dealing with here is the leftovers of the New Labour administration which didn't take kindly to the converyor belt of criticism and their answer was to eradicate the source which was the likes of myself and before that Garry Heath. For my sins I now look at things dispassionately, not as a regulator, not as the regulated and not as a consumer but as an observer and the view from here is quite stunning at times. The FSA is about to be split in two, that may be a good thing if the CPMA is a much better supervisor and pots 'trends'.

I can see where the FSA (via HMT policymakers) was coming from with the RDR, albeit in part, but making more and more rules is not the solution to problems caused by ineffective supervision.

Sants tells MPs that misselling costs the public £600m a year | News | Money Marketing

2011-01-07T03:21:00.000-08:00

Sants tells MPs that misselling costs the public £600m a year | News | Money Marketing

I doubt that anyone knows how much damage is caused by lousy advice, just before Xmas a widow came to me with a horrendous tale, in less than a year she had lost £380,000 from what was supposed to keep her and the children in the manner to which they had become accustomed until her GP husband passed away at a young age.

If the FSA had been on the ball this might not have happened and to make matters worse the firm is still being allowed to trade! The people running this firm are highly qualified crooks.

Most of what the FSA is using as evidence in support of the RDR might have been avoidable had the regulators been able to spot the 'trends' created by changes in legislation such as 'break free from those chains of your occupational pension scheme', this is where the supervision by the regulators has been absolutely abysmal, the damage caused to the UK is all down to a lack of vision and coordination. The rest is history but we are still paying for it and so will our children and their children.

Russia's Putin prepared to take on Britain's FSA

2011-01-03T03:58:00.000-08:00

Russia's Putin prepared to take on Britain's FSA

Best of luck!!

FSCS urged to preserve Lifemark value to reimburse IFA levies | News | Money Marketing

2010-12-07T03:55:00.000-08:00

FSCS urged to preserve Lifemark value to reimburse IFA levies | News | Money Marketing

Ah, yes IFA levies.

Dear Mr Ford, the FSA said this last week:

"A firm which had been given permission by the FSA to advise on, act as agent for, arrange deals in and manage investments would be allocated to the ‘Class D Investment’ fee block which contains both fund management (sub-class D1) and investment intermediation (sub-class D2). Such a firm’s FSCS levy would be based on the amount of tariff data they reported for each relevant sub-class and not a proportional split between these sub-classes.

You should be aware that specific information the FSA receives from, or about, regulated firms or individuals, where this is not in the public domain, is likely to be prohibited from disclosure under section 348 of the Financial Services and Markets Act 2000. This is because it would be confidential information received for the purposes of carrying out our regulatory functions and supervision of those firms and individuals. Such information is therefore likely to be exempt by virtue of section 44 (Prohibitions on disclosure) of the Freedom of Information Act 2000."
************************

Can you tell us Mr Ford? Or can you give the FSA permission to disclose?

Former head of RBS investment bank Johnny Cameron says FSA must publish report - Telegraph

2010-12-06T23:14:00.000-08:00

Former head of RBS investment bank Johnny Cameron says FSA must publish report - Telegraph

As with most of the New Labour legislation the "Act" contains a Henry VIII clause whereby one of Her Majesy's Ministers can change it with the stroke of a pen.

Do it Mr Osborne, if it does the regulatory system no harm.

FSA report into RBS must be made public, says Lord Oakeshott - Telegraph

2010-12-02T23:29:00.000-08:00

FSA report into RBS must be made public, says Lord Oakeshott - Telegraph

The idea that one man can run a bank of that size is insane, as is the amount of money handed to him despite the failures of which there were, and still are, many. I don't think we can blame the regulators for the failure of Parliament to ensure that the legislation which empowered them was robust enough. We can also consider how much political influence was aimed at the FSA to allow the banks to 'regulate themselves', when you consider that last year there were only SIX regulators assigned to supervise one of the biggest banks we can only assume that the "collective intellectual failure" was inevitable. Then we examine the list of FSA staff, a large proportion of them are former BofE who in turn have employed even more bankers, does that create bias?

FT.com / Columnists / Lombard - FSA ensures lessons of RBS boardroom stay unlearnt

2010-12-02T14:24:00.000-08:00

FT.com / Columnists / Lombard - FSA ensures lessons of RBS boardroom stay unlearnt

We have to ask whether the Act which empowers the regulators is sound, if it is then why do the executives of these failed banks get away with the proverbial blue murder while small firms are being hounded out of existence for doing no wrong.

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

Spanish bank bids to seize couple's UK home after they miss payments on holiday flat | Mail Online

2010-11-28T04:54:00.000-08:00

Spanish bank bids to seize couple's UK home after they miss payments on holiday flat | Mail Online

Good grief, the banks need an EU wide regulator. If these people took advice then they should grab their adviser by the jugular, if they didn't take advice then more fool them.

Treasury Select Committee has turned into a tiger - Telegraph

2010-11-26T13:48:00.000-08:00

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.

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

2010-11-25T04:00:00.000-08:00

'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.

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

2010-11-24T23:57:00.000-08:00

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.

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

2010-11-22T03:23:00.000-08:00

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.

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

2010-11-20T02:33:00.000-08:00

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.

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

2010-11-18T07:43:00.000-08:00

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.

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

2010-11-16T09:34:00.000-08:00

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"

2010-11-16T06:25:00.000-08:00

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

2010-11-16T06:24:00.000-08:00

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.

Get a sense of reality | Opinion | Money Marketing

2010-11-15T04:53:00.000-08:00

Get a sense of reality | Opinion | Money Marketing

Can't see any balance here!

FT.com / Companies / Financial Services - Man Group chief hits at move to shut FSA

2010-11-14T23:53:00.000-08:00

FT.com / Companies / Financial Services - Man Group chief hits at move to shut FSA

So that's what the FSA has been doing all these years?

Get a sense of reality | Opinion | Money Marketing

2010-11-12T06:54:00.000-08:00

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

Committee rules against FSA rejection of ex-Park Row adviser | News | Money Marketing

2010-11-11T03:13:00.000-08:00

Committee rules against FSA rejection of ex-Park Row adviser | News | Money Marketing

Same principle applies to pulling permissions for not attaining retrospectively applied qualification requirements?

Regulators must look before they leap.

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

2010-11-10T03:02:00.000-08:00

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.

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

2010-11-09T23:41:00.000-08:00

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

2010-11-09T23:25:00.000-08:00

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.

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

2010-11-06T05:36:00.000-07:00

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.

Redrow chairman in mortgages warning - Business News - Business - WalesOnline

2010-11-05T00:18:00.000-07:00

Redrow chairman in mortgages warning - Business News - Business - WalesOnline

Now the FSA is making matters worse where I live, I don't like that.

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

2010-11-04T15:37:00.000-07:00

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.

The Mcflipping point | Opinion | Money Marketing

2010-10-29T04:36:00.000-07:00

The Mcflipping point Opinion Money Marketing

Someone once described gathering IFAs to speak as one as being akin to "herding cats".

I have tried to imagine a more difficult creature to "herd", how about sharks? No, Mike says you can use a piece of bleeding meat to gather them, how about slugs? No, Mike says you can use some lettuce... what can you use to gather IFAs?

Well, some like commission, some like fees, some like exams, some like blogs...

More than anything else they like to express their version of what is right or wrong, whether they are right or wrong, because they are always right!

Can you tell me whether your vision of the future and what the FSA is trying to achieve is what the man on the Clapham Omnibus wants, or needs?

Bank admits to errors in its forecasting

2010-10-28T08:00:00.000-07:00

http://www.independent.co.uk/news/business/news/bank-admits-to-errors-in-its-forecasting-2118402.html

The deputy governor of the Bank of England, Charles Bean, has admitted that the recession "highlighted shortcomings" in the Bank's economic forecasting models.
He said that even had the Bank considered the possibility that the economy could shrink by more than 6 per cent, as actually happened, the Bank would have put the chances as being "virtually negligible".

"One would need to be endowed with perfect foresight to have been able to predict how the financial crisis would unfold, spilling over from one institution to another, and from one market to another," he added. "Who knows what would have happened if, for instance, Lehman Brothers had successfully found a buyer that weekend in September 2008?"

Is he saying that nobody can see into the future?

These will be the top dogs in regulatory circles, they have all the power, the knowledge and the data yet they can’t be held accountable for their failure to forecast problems.

Yet, the regulators pillory small IFAs for not being able to forecast changes which took place after they gave advice in good faith under what was known as a “reasonably held opinion” many years ago.

MM leader: Engage with IFAs rather than scoring cheap points | Opinion | Money Marketing

2010-10-28T02:09:00.000-07:00

MM leader: Engage with IFAs rather than scoring cheap points | Opinion | Money Marketing

A message from The IFA Defence Union

"Some politicians, a committee and their Chairman do engage.

Contrary to what your supposedly representative bodies say there is a need to provide real examples of how regulation is strangling you and militating your ability to do more for larger numbers of consumers.

Send us your thoughts, they can be made in confidence so that the regulators can't get back at you or you can be brave and let the politicians publish your feelings.

Make the most of the increasing pressure being applied to a failed regulatory system, make sure it doesn't continue as it has, or gets no worse."

Bupa loss has critical consequences | Opinion | Money Marketing#commentsubmitted#commentsubmitted#commentsubmitted#commentsubmitted#commentsubmitted#commentsubmitted#commentsubmitted#commentsubmitted#commentsubmitted

2010-10-26T08:18:00.000-07:00

Bupa loss has critical consequences | Opinion | Money Marketing#commentsubmitted#commentsubmitted#commentsubmitted#commentsubmitted#commentsubmitted#commentsubmitted#commentsubmitted#commentsubmitted#commentsubmitted

What have the regulators done for society?

Easy, they have decimated consumer choice.

I used to predict five shades of grey as they have in Germany, make that three.

Why we must back UK plc - Telegraph

2010-10-24T07:19:00.000-07:00

Why we must back UK plc - Telegraph

"Build wealth"?

For who? Or is it whom?

Is it the Man on the Clapham Omnibus? Or is it those at the top of the biggest Ponzi scheme of all?

Who notices these cuts? Cameron? Osborne? Hoban? Cable? HM Treasury? The FSA? The bankers? The City?

Who notices the taxes? Up goes VAT, down goes child benefit, who feels the pain?

Us, not them, not the 'Masters of the Universe', they are so divorced from the daily grid down here that we may as well not exist, like worker ants, or the host for all those parasites up top.

Time to look at this from the bottom up?

Bankers 'caused credit crisis for kicks' - Telegraph

2010-10-24T04:22:00.000-07:00

Bankers 'caused credit crisis for kicks' - Telegraph

They are drug dealers, pushers, society is hooked on their drugs, from the top down, from Downing Street, the 'Masters of the Universe' can be compared to the criminal fraternity and their assets should be seized in order to repay the long suffering and ever so 'umble taxpayer.

All these bright sparks, the politicians and their banking buddies, the regulators, Lord Turner et al, yes the lot of them are a 'Collective Intellectual Failure", a pox on society.

We the people need some balance, I see less each day.

City fears new Bank of England powers will hit democracy - Telegraph

2010-10-24T04:15:00.000-07:00

City fears new Bank of England powers will hit democracy - Telegraph

"Democracy", you 'avin a larf sir? Can anybody tell me when we ever had 'democracy'? It is a mirage dreamed up by the powerful and the wealthy, the rest of us merely exist day to day in order to keep them in the manner to which they have become accustomed.

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

Keydata bonds may destroy my factory: Successful manufacturer fights to survive investment disaster | Mail Online

2010-10-24T03:08:00.000-07:00

Keydata bonds may destroy my factory: Successful manufacturer fights to survive investment disaster | Mail Online

From the Lampott site:

"Richard is an appropriately qualified (by advanced examination) pensions specialist"

The FSA is insisting that "advanced qualifications" be taken by all advisers in order to "raise standards" and "provide better outcomes for consumers".

Mark Hoban likened current adviser qualifications to "the same level as a diploma in shift management offered by McDonald's".

Well Mr Hoban, and Lord Turner, I only have FPC but despite my lowly qualifications I would never have advised this firm to invest even £5 in the Lifemark backed black hole.

Common sense and experience are more valuable than "advanced qualifications", the sooner you realise this the better it will be for the nation, if you look at all the brains at HM Treasury, the BofE and the FSA you can see that all those bright sparks failed spot the banking crises, Equitable et al. A trail of "Collective Intellectual Failure" of gigantic proportions and they get bigger each time!!

MPs frustrated with RDR trade body grilling | News | Money Marketing

2010-10-22T01:33:00.000-07:00

MPs frustrated with RDR trade body grilling | News | Money Marketing

Of course people are scared of the FSA, it is the most powerful regulator on the planet.

Give a human being this power and he/she will abuse it, in this case by simply ignoring common sense, this applies in all cases were regulators control the regulated, take any business which has to adhere to ever more prescriptive regulations and you will find businessmen and their representative bodies who are fearful of 'inspectors' who can often be vindictive. IFAs suffer from the most onerous regulation in return for causing the least consumer detriment, is that fair and reasonable?

Is there balance?

Moneysavingexpert.com founder echoes fears RDR will cut access to advice | News | Money Marketing

2010-10-21T10:02:00.000-07:00

Moneysavingexpert.com founder echoes fears RDR will cut access to advice | News | Money Marketing

I have been told that Martin is a very successful man, made a fortune doing what he believes in, all completely unregulated.

He is right that an IFA is better than a tied agent for many reasons, primarily due to the choice of whole of market.

A senior FSA Director told me a bank's payment protection insurance was 'better than nothing' when I was describing the lack of choice with regard to income protection products offered by banks.

There is a distinct lack of understanding, appreciation and knowledge of what an IFA can do among regulators and politicians alike. They are wearing cloth ears.

Backbench MPs continue attack on the RDR | News | Money Marketing

2010-10-21T07:09:00.000-07:00

Backbench MPs continue attack on the RDR | News | Money Marketing

Anyone else watch the recent programme on CH4 "Undercover Boss USA" - featuring the CEO of the 7/11 empire going undercover in the 7/11 outlets as a novice employee?

One store he visited sold more coffee than any other 7/11 store and he wanted to discover why - he didn't think it was the coffee, because it had the same coffee as every other store.

What he found was a manageress at that store who knew every customer, knew them by their first names, knew about their families, their ups and downs in life, their background and their future plans - it was that unique person and the relationships she had built with the customers that sustained that business.

Maybe, one day Mr Hoban might just spend time undercover with the IFAs who have established just those types of relationships with their clients. Yes, some will have passed exams, and some will not, but it is the relationships and the trust involved that provides the value to the IFA and the clients.

You never know, one day Mr Hoban will indeed wake up and smell the coffee - and ask himself, just as the CEO of 7/11 did

- why IFAs (exam passed or not) have the share of the markets that they do have, and others don't.

- and the high level of complaints that they don't have, and others do.

By Mike Fenwick

TSC MPs warn of RDR abandoning IFAs | News | Money Marketing#comments#comments#comments#comments#comments#comments#comments

2010-10-19T09:34:00.000-07:00

TSC MPs warn of RDR abandoning IFAs | News | Money Marketing#comments#comments#comments#comments#comments#comments#comments

Committee member and Labour MP for Leeds East George Mudie said he represented constituents very unhappy about the RDR. Addressing Sinclair and Gazzard, he said: “I have a lad in his late 50s who has been in the industry for 20 years and you have left him abandoned because he is not passing the exams. He is out of a job.

“Is there an effort being made to get an assessment system that will rescue these lads and lasses who have been in this industry for many years and are now stranded and are not able to work in the future?

“You are saying there is a way forward but there are difficulties, are you intent on getting that way forward or is this just words?”

IS IT ILLEGAL?

FT Alphaville » What’s going on inside the FSA?

2010-10-15T08:35:00.000-07:00

FT Alphaville » What’s going on inside the FSA?

Er.... does anyone remember the few hundred years before financial services regulation? Has regulation improved our lot? Is it true that all we have to show for all this regulation is thousands of regulators staring into the abyss? I wonder if the Monty Python team could do a sketch on regulation along the lines of "What have the Romans ever done for us? Or the Judean People's Front, or was the the People's Front of Judea? Who cares, we are in a mess and until regulation is based upon what society needs instead of all this top down 'Collective Intellectual Failure' we will continue to chew the cud and get absolutely nowhere.

Planning Portal - HBF chief warns of ‘anti-development feeling’

2010-10-15T08:24:00.000-07:00

Planning Portal - HBF chief warns of ‘anti-development feeling’

More regulatory arbitrage doomed to failure.

Grand stands | Analysis | Money Marketing

2010-10-15T02:49:00.000-07:00

Grand stands | Analysis | Money Marketing

If the adviser sector had stood as one and offered a home cooked solution the regulators would have listened and given it a chance.

The fact that the likes of Ken and Martin have their own agenda and refuse point blank to accept that you are all in the same boat is the reason why the loudest voices get heard, simply because they have the money (CII etc).

It is frustrating to watch but I am glad I am not regulated, I bet Ken is too.

Hoban backs RDR move to fees - IFAonline

2010-10-14T07:21:00.000-07:00

Hoban backs RDR move to fees - IFAonline

I can see where he is coming from.

But can he see where he is going to?

Yes there are problems with commission, there are also problems with fees, even if the advice was free there would be issues.

The RDR misses the target and the man with the crossbow is using a blindfold.

Top down regulation has failed, is failing and will forever fail.

Until what the consumer needs is the driving force behind regulation the efforts of Mr Hoban and his successors are doomed to failure, unfortunately it is society which pays the price for the failure of their elected representatives.

FTAdviser.com - Shapps fears locking another generation out of properties

2010-10-14T01:30:00.000-07:00

FTAdviser.com - Shapps fears locking another generation out of properties

Organised chaos once again, par for the course for all these intellectuals. Another example of what Clive Briault described as a "Collective Intellectual Failure".

We have the FSA hammering the nails in the housing industry’s mortgage coffin, we have Pickles ripping out the heart of the already dead planning system, we have Hoban off doing his own thing, we have Turner blaming the ‘bad policy’ which he allowed to be implemented, we have Shapps blaming the “housing boom’ for all our ills while at the same time saying we can’t exclude another generation from the housing market.

I can’t see any joined up thinking, do you?

Let’s start at the bottom, chop up all this ‘top down’ regulation, it hasn’t worked, it isn’t working and it won’t work.

Let’s look at what the people need, let’s make a list and work out how we can provide it instead of faffing about with rules, regulations, restrictions and flawed legislation.

Go on, make a list, what are Joe Public’s priorities, need some hints? Well, they don’t have the same desires as bankers, politicians or regulators so we’ll scrap that lot straight away.

Do we need a revolution? Of sorts yes, but do the three monkeys want it?

NO

Paul Killik: The FSA is killing advisory stockbroking - Citywire

2010-10-13T04:24:00.000-07:00

Paul Killik: The FSA is killing advisory stockbroking - Citywire

When I asked Hector what the RDR was all about he said "we thought if we raised standards everyone could become stockbrokers".

Is Mr Killick telling me that the regulator is on the wrong path to Valhalla?

Personally I wonder how a percentage of the sale of stocks is any different to any other form of commission, if the stockbroker advises the client to do nothing he doesn't earn any money, does he? It therfore follows that the cap does fit, you are indeed in the same box which is becoming more spacious by the week. Some might say that is what you get for being so full of self-interest, so blinkered, so short-sighted.

Barclays latest lender to defy FSA on PPI | News | Mortgage Strategy

2010-10-13T04:09:00.000-07:00

Barclays latest lender to defy FSA on PPI | News | Mortgage Strategy

Par for the course isn't it!

When is the regulator going to nail these people once and for all, they grew fat on 'conditional' sales and now the worm has turned they are using the money to drag this out through the courts until the time runs out for their victims.

Comment: IFAs should not fear the fork in Standard's route ahead - New Model Adviser® Edition - Citywire

2010-10-13T02:24:00.000-07:00

Comment: IFAs should not fear the fork in Standard's route ahead - New Model Adviser® Edition - Citywire

Pardon?

Standard Life signed up all sorts of tied muppets, Halifax for example, there were hordes of tied and now multitied agents, take Barclays for example.

The only fork I can perceive is the one in the tongue.

If Standard Lamp wants to win IFA friends and influence them it needs to make amends. Until then it will continue to see a net outflow of funds, which is probably why it is trying to flog off its 'investment' arm... er... who else announced a similar wheeze recently?

Lloyds risks FSA clash over customer PPI complaints - Telegraph

2010-10-13T01:22:00.000-07:00

Lloyds risks FSA clash over customer PPI complaints - Telegraph

Can you imagine a government owned bank and a government controlled regulator having a 'clash', like one legged men in a bum kicking competition with a one legged referee...

FSA gains collective redress powers - Citywire

2010-10-12T11:10:00.000-07:00

FSA gains collective redress powers - Citywire

The Financial Services Authority (FSA) has been granted the power to force businesses to establish collective redress schemes to compensate consumers and publicise enforcement actions earlier.

The power was created by the Financial Services Act 2010 and activated today along with others changes to the regulator. The FSA will use collective redress schemes where there is evidence of widespread failings following large numbers of claims made to the Financial Ombudsman Service over issues like Payment Protection Insurance.

‘This is an important new tool for the FSA, which increases our ability to get redress for consumers when firms have not followed our rules,’ said Sally Dewar (pictured), managing director of risk at the FSA. ‘The power would obviously be used proportionately. It is not a substitute for working with industry where there is the potential to bring an issue to a fair and speedy conclusion.’

The FSA has also acquired the power to publish decision notices ahead of final notices, which means that it can publicise enforcement actions rather than waiting for the Financial Services and Markets Tribunal to process appeals.

The Financial Services Act 2010 also removes the FSA’s statutory objective to promote public understanding of the financial system following the establishment of the Consumer Financial and Education Body.

Should be fun!!

Housing minister warns of letting down future generations | News | Money Marketing

2010-10-12T08:45:00.000-07:00

Housing minister warns of letting down future generations | News | Money Marketing

I have no idea what his version of stability is, if you look at all the cuts facing families, the regulatory arbitrage over mortgages and the planning system hatchet job by Pickles you have to wonder where this 'stability' is coming from and what form it is expected to take.

I don't think they want to be voted in again, do you? Wilfully putting millions of homeowners in negative equity is not they way to win friends.

Lloyds snubs FSA as it puts PPI claims on hold - Telegraph

2010-10-12T08:24:00.000-07:00

Lloyds snubs FSA as it puts PPI claims on hold - Telegraph

What is needed here is a class action by their 'customers', but will they be brave enough to confront their banks? We all know what they are like when it comes to "do you want to make this a formal complaint?", "have you considered finding another banking facility before you do?". The banks don't abide by DISP rules and yet they get away with it, why is that?

Come on FSA do what you do best, squeeze them where it hurts, threaten to ban them from selling insurance full stop.

Buy-to-let: the elephant in the room? «

2010-10-12T05:38:00.000-07:00

Buy-to-let: the elephant in the room? «

Homelessness, inadequate housing, decrepit dwellings, a growing population, a collapsed banking system, a new and naive government, millions of opinions - all different.

In there we might find some balance but I can't be bothered to look, why? Too many flaming regulators, from planning departments to the ultimate bogeyman, the FSA, we are being pulled in all directions because we lack leadership with vision, none of them know what to do, that is my biggest disappointment after voting Tory for the fist time in my life.

PPI rules open door to retrospective regulation, says BBA | News | Money Marketing

2010-10-12T01:26:00.000-07:00

PPI rules open door to retrospective regulation, says BBA | News | Money Marketing

The PPI gravy train has hit the buffers, it only took two decades, where would we be without regulation? We might be a lot better of without any regulation, much better than bad regulation and Adair Turner's 'Bad policy'.

Come on bankers, give the 'consumers' their money back and pay back the bonuses you have earned off the back of these 'conditional sales'.

I'll stand up in court when asked

IFAs helping Keydata clients face PII backlash - IFAonline

2010-10-11T02:54:00.000-07:00

IFAs helping Keydata clients face PII backlash - IFAonline

Why is every man and his dog blaming every other man and his dog for all this?

All the while the FSA stays silent..

Is that what regulation is all about? Point, fine and ban?

One senior FSA figure told me they had a limited set of tools, you may wonder where 'tools' were mentioned in the FSMA 2000, you may wonder whether that tome of legislation created a regulator powerful enough to.. er... regulate.

Blame the lawyers and the politicians, they created this mess and they and the same architects of previous collapsed edifices will no doubt do the same thing again with the next 'new' regulator.

Linda Robson: 'I should have put away more money when I had it’ - Telegraph

2010-10-11T00:02:00.000-07:00

Linda Robson: 'I should have put away more money when I had it’ - Telegraph

DON'T YOU HAVE A PENSION?
Yes. I started putting money into a pension plan about 12-15 years ago, but I don't know how well it's been doing. It's like I've got dyslexia when it comes to figures. When I sit in a meeting with a financial adviser I'm always feeling I don't want to listen – it just seems like too much effort. I had to be persuaded to buy our first house, for example, but I'm glad I did that now.

PERSUADED

It isn't the same as SALES

BBC News - Banks take on FSA over 'illegal' PPI rules

2010-10-10T06:34:00.000-07:00

BBC News - Banks take on FSA over 'illegal' PPI rules

The banks will have to grin and bear it.

As you sow so shall you reap...

Update from Mike Fenwick

2010-10-09T05:59:00.000-07:00

Before my more detailed comments, I wish to place on record my sincere thanks to two people - Evan Owen and Rod Leonard for the support they have given me, whilst I carried out the research against which I make the comments below.

The jury is out on whether I should thank them for encouraging me back into a world of regulatory insanity, one that I thought I had left - altho' in more recent posts here, you will have seen me say that I had started and intended to continue.

Let me first make this distinction - it is something I recorded in a very early post on here - I do not believe that all IFAs, and their actions can be defended, I do however believe in financial advice which is truly independent.

You may not have seen this article in Money Marketing:

http://www.moneymarketing.co.uk/adviser-news/ifas-must-break-the-pattern-of-top-down-financial-hierarchy/1018926.article

It was as Evan commented, edited from the draft I sent to MM, but it does contain two sentences which I wish to highlight - these:

As an IFA, think of the FSCS. Your survival requires you to account for your own liabilities but also pay for the failures (undetected by the regulators) of everyone else. Similarly, the public must cough up for its own liabilities and for the failures (again undetected) of the banks.

There can be no IFA who is unaware of the issues over the costs of the FSCS etc etc.

Equally there can be nobody in the UK who is unaware of the costs arising from the collapse of the Banks.

They are both issues where the innocent are asked to pay for the costs of the guilty.

I have another article to prepare for MM - in which I will start to offer suggestions as to how the FSCS could be totally reformed - apologies, but details have to wait until I have agreed the position with MM.

Now, I doubt whether most, if not all, IFAs would understand why I am targeting the issue of bank charges, but there is for me a very valid reason and it ties in with the distinction I drew above.

Good IFAs take on the problems of their clients, and broker their clients through the complexities of the financial world - it is that in that performance that they have value and add value.

In time I will attempt to show how by targeting one issue, in this case Bank charges, it is possible for IFAs, by resolving that issue for others, they can also address the issues they themselves face.

Are they same issues?

Well, here is an extract:

Referring to both the OFT and the FSA, and in particular to the waiver issued by the FSA, I ended my last post with this question:

What is it in the nature of their relationship, that allows them:

- complete control over the rights to justice of ordinary people,
- and the power to halt Courts of Justice stone dead in their tracks! Something not even Governments find easy to do.

Do IFAs feel that the FSA have complete control over their rights to justice?

Do IFAs feel that the FSA and the FOS can halt the Courts of Justice stone dead in their tracks?

And yet in that extract - I am not writing about IFAs directly, but about the millions of ordinary members of the public who have been denied their rights on this issue of bank charges.

Where is that extract from? A blog I am writing which can be found here:

http://notproven.blogspot.com/

The blog is very much work in progress, and I wish to see it finished asap. Then I will advocate the next steps - for those who are interested in restoring some sanity to the world of regulation, for themselves, AND the wider public.

Mike ...

PS: The FSA, OFT, Treasury Select Committee and others have been made aware of the blog, and whilst not yet complete I am now extending the list of those who I think need to be made aware of its existence. If any of you who are reading this post wish to advise others (who may not be on this IFADU list) of its content, please feel free to do so.

Reforming the Regulators - Adam Smith Institute

2010-10-09T05:49:00.000-07:00

'..the annual cost of regulation to the British economy was an astonishing 10–12 per cent of GDP.....The economist Elaine Sternberg has observed that: ‘Regulation is typically part of the problem, not the solution. ..........One of the reasons for the failure of the regulatory agencies is the nebulous accountability regime. A House of Lords Select Committee inquiry into market regulators concluded that, paradoxically, they are accountable to everyone and no one.... Regulators should draw up strategic plans for reverting first to having only an economic, competitive market creating, role, and then their own demise. The costs of new non-economic regulation should be transferred to national or local government. Following the closure of each regulator, its remaining responsibilities should be transferred to the OFT.

Reforming the Regulators

George Osborne warns banks of new taxes - Telegraph

2010-10-09T05:09:00.000-07:00

George Osborne warns banks of new taxes - Telegraph

Why do bankers receive bonuses in the first place? Aren't they lucky enough as it is to have a decent wage coming in? Do they know how high feelings are running right now while ordinary people who witness this culture of greed are being expected keep bailing the banks out?

FSA to fight banks over judicial review of PPI probe - New Model Adviser® Edition - Citywire

2010-10-09T02:37:00.000-07:00

FSA to fight banks over judicial review of PPI probe - New Model Adviser® Edition - Citywire

Come on banks, hold your hands up, admit your guilt, stop faffing about.

And while you are at it how about reclaiming all those bonuses paid to bankers for flogging these useless policies?

I wonder how many 'customers' have managed to get a claim paid under these PPI contracts? I bet it is ZERO.

80% commission, good little earner, particularly when they own the insurer too!!

US watchdogs order HSBC to fix risk controls | This is Money

2010-10-08T03:21:00.000-07:00

US watchdogs order HSBC to fix risk controls | This is Money

The head honcho left just in time? Is he as lucky as the FSA's John Tiner? Or are there forces at work here, the 'Masters of the Universe'?

Regulatory creep warning over rise in FOS award limit | News | Money Marketing

2010-10-07T23:22:00.000-07:00

Regulatory creep warning over rise in FOS award limit | News | Money Marketing

CMS Cameron McKenna partner Simon Morris says: “The increase in the maximum award to £150,000 is concerning to the industry when FOS decisions are taken with limited due process.”

I haven't found any due process.

Aifa calls role of FOS into question | News | Money Marketing

2010-10-07T23:16:00.000-07:00

Aifa calls role of FOS into question | News | Money Marketing

More "Issues of fairness" Hector?

The legal profession has an Ombudsman award limit of £30,000 when in practice, yet IFAs in retirement face awards of £150,000.

Is that "fair and reasonable", I would contend that it isn't.

The FSCS limit is far lower.

This compensation machine will become your prison, and theirs.

The malady lingers on | Opinion | Money Marketing

2010-10-07T06:53:00.000-07:00

The malady lingers on | Opinion | Money Marketing

Talking about the FOS, journalists etc, what did you do with the Consumers Association samples of Which? magazine that I sent you when asked publicly for some Nic? You remember, the topic was did Which? have mortgage endowment 'best buys'. There are lots of such articles relating to guaranteed income/growth bonds, pensions, you name it. I can't publish because Which? set their legal dog, or dogs, on me. I also have articles from national papers describing the benefits of investments which bombed eventually.

What I am trying to say is that it doesn't matter if an adviser had an 'honestly held opinion' (so did the regulators at the time) that this or that product or investment was suitable for Mr & Mrs Public the FOS can, and more than often does, make it all up after the event and the adviser can't defend him/her self. For those of you standing outside this compensation machine which has become a prison it is a fact that you can't see the wood for the trees.

Having said all that I do agree with you that there are more useless advisers than you can shake John Tiney's big stick at. But there are also some highly opinionated journos with selective memory syndrome.

Advisers slam BBC Panorama pension probe | News | Money Marketing

2010-10-06T07:48:00.000-07:00

Advisers slam BBC Panorama pension probe | News | Money Marketing

Raj Patel - You should spill the beans to the FSA and stop inserting more imbalance into this heated debate.

Yes commission has caused immeasurable problems but the 'concept' was sold by the providers, it is a 'drug' and they are the drug dealers, that is why the FSA wants to remove provider influence, the likes of Berkeley Independent Advisers, Berkeley Jacobs and Berkeley Berry Birch showed the regulators how unsavoury this business can be. Funny how many 'Berkeleys' there are among the cadavers littering the financial landscape!

The real culprits behind the rise in mortgage fraud - Citywire

2010-10-03T04:38:00.000-07:00

The real culprits behind the rise in mortgage fraud - Citywire

No bankers being locked up for their part? No "consumers" detained?

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

Got a legal complaint? Now you can take it to the new legal ombudsman | Money | The Observer

2010-10-03T02:10:00.000-07:00

Got a legal complaint? Now you can take it to the new legal ombudsman | Money | The Observer

"While he admits the £30,000 maximum for redress is not high, he believes most cases will relate to small amounts of money."

Why the disparity with the Financial Ombudsman Service (FOS)??

More than 7,000 complaints lodged against banks every day - Telegraph

2010-10-02T02:32:00.000-07:00

More than 7,000 complaints lodged against banks every day - Telegraph

Once upon a time a banker told me they built in "complaints shrinkage" of more than 5% of all new business, a bit like shops and shoplifting but more perverse, yes it is par for the course but the fact is that 90% of those who might have a valid complaint are too afraid to risk losing their 'facility'. As one recent complainant to saverjustice said: "the man at the call centre asked me if I wanted to make the complaint 'formal' and if i did it woudl be best to find another bank who would take me in, he suggested the Co-Op". let's look at this carefully, the FSA rules say that a complaint is an expression of disatisfaction whether made orally or in writing, the bank rep wanted the complainant to make it "formal" which means the banks own "rules" do not comply with the regulations. When I met the FSA I asked how many FSA staff supervise the banks the lady said "we have sixteen people supervising Barclays and they only look at the prudential requirements". I was stunned, still am, how on earth can the FSA ensure that the sales processes and complaints handling of the banks is up to its standards (whatever they are on a given day) when they only have sixteen people supervising a bank with more than 50,000 employees all on targets and bonuses?

To me the FSA loks like the local police force, they use up all their resorces on paperwork and easy targets, in the FSA's case it is the small IFA firms who as it happens 'generate' a tiny fraction of teh complaints.

Regulation is bust, society is in dire need of regulatory balance, I see less each day.

By the way, I am a regulatory consultant with almost three decades of experience in bad regulation created by bad government policy, blame the people you vote for and the 'architects' they employ who created every duff regulator to date and will create the next one.. oh and the same regulators (people) who have been around as long as I have.

Standard Life aims to double direct business by 2015 - New Model Adviser® Edition - Citywire

2010-10-01T05:40:00.000-07:00

Standard Life aims to double direct business by 2015 - New Model Adviser® Edition - Citywire

Where would they be without depolarisation MkII, son of depolarisation, depolarisation rides again, depolarisation the sequel, AKA - RDR??

If they have so many "Orphans' now can anybody guess how many there will be post RDR? No? Don't care? Then you must be a regulator or someone who thinks the world will be their cockle and millions of consumers will be flocking to your offices. It is a mirage.

Yes another "Collective Intellectual Failure", pronounced syph.

Andrew Tyrie MP: the man scrutinising regulation of banks - Citywire#435777#435777

2010-10-01T00:59:00.000-07:00

Andrew Tyrie MP: the man scrutinising regulation of banks - Citywire#435777#435777

Tomothy Burton: Standard Life was not 'named and shamed' until well after the sales of mortgage endowments fell off the cliff. It was me who uncovered this discrepancy between what Standard Life used to produce illustrations and the actual charges which created the built-in shortfall. What did the regulator do about this? It fought tooth and nail to prevent the release of information which would have resulted in the collapse of so many financial institutions who had bought into this Ponzi scheme.

But what has the FSA said about bank charges? Are they fair or not? Technically the FSA said they are unfair, publicly no such admission, no fines, no bans, nothing.

Make no mistake, the British consumer is not protected by regulation, the banks are though. Is this all for the common good? Is it right that the bankers carry on as if nothing had happened? Well, the regulators end up with a big 'banking' job so why rock the boat?

If anyone can prove to me that splitting the banks up will make any difference then they have my vote, until then perhaps they should leave our shores because we can't afford them, make sure they pay the taxpayer back first!!

FSCS rejects compensation claims for Arc, NDF and DRL investors | News | Money Marketing

2010-09-30T06:46:00.000-07:00

FSCS rejects compensation claims for Arc, NDF and DRL investors | News | Money Marketing

"External advice"? A dartboard perhaps?

I'm sure that many advisers who avoided these "esoteric and opaque" (Martin's words) products will breathe a sigh of relief, I know some firms who will be in a pickle though and if they fell over there would be a flood, nay a tsunami heading the way of the FSCS.

This compensation machine will become your prison, and theirs.

Andrew Tyrie MP: the man scrutinising regulation of banks - Citywire

2010-09-30T06:32:00.000-07:00

Andrew Tyrie MP: the man scrutinising regulation of banks - Citywire

Mr Tyrie is without a shadow of doubt the best man for the job of scutinizing what lesser mortals might want to do in the name of regulation. I would hope that he carries enough weight, if not the binding power, to ensure that the architects of all previous failed attempts do not allow this country to go through what it has over the last two and a half decades, the catastrophes get bigger and more damaging as time goes by so it cannot be simply a matter of needing a new piece of legislation, we need strong management and removal of the civil service 'departmental' attitude where the ones put in charge have no control over the ones who are supposedly under him/her.

FSA calls for firms to appoint complaints manager | News | Money Marketing

2010-09-30T04:11:00.000-07:00

FSA calls for firms to appoint complaints manager | News | Money Marketing

This is something which is lacking, particularly at the banks and direct sales outfits, but compliance, complaints - how many hats can a sole trader wear? I know, the Guinness records people count the number of underpants an individual can slip on in a certain time frame so why not have a record for the number of hats an IFA can wear in his working like while standing on one leg, with a brush you know where?

No, seriously folks, there is an imbalance in the claims industry where the FOS and other opponents can run rings round some IFAs, particularly the retired one who have no idea what this is all about. How about an independent arbitration scheme which is not binding and compulsory (which would make it compliant with Article 6) yet does carry some weight because it would be run in accordance with the law of the land.

Dream on.

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

FSA to increase FOS limit to £150k | News | Money Marketing

2010-09-30T02:19:00.000-07:00

FSA to increase FOS limit to £150k | News | Money Marketing

This compensation machine will become your prison, and theirs.

What is AIFA doing about all this unfairness? It is bad enough for those currently authorised but my sole trader friends who have left the industry, some a decade or more ago, can't sleep, partly because of the never ending worry and partly because they have lost their homes, their families, their dignity.

I don't argue that one or two may have been irresponsible but the fact remains that a never ending liability which is judged using 100% hindsight by a computer decision tree is immoral and I would argue illegal, well I would wouldn't I..

FT.com / Comment / Editorial - FSA misjudges media and markets

2010-09-29T23:35:00.000-07:00

FT.com / Comment / Editorial - FSA misjudges media and markets

Regulation is bust, more "bad policy" Lord Turner?

U.K. Building Societies Attack FSA Plans to Limit Interest-Only Mortgages - Bloomberg

2010-09-29T23:32:00.000-07:00

U.K. Building Societies Attack FSA Plans to Limit Interest-Only Mortgages - Bloomberg

And so they should, more "bad policy" Lord Turner?

Special report: Inside Britain's deathbonds scandal | Reuters

2010-09-29T23:28:00.000-07:00

Special report: Inside Britain's deathbonds scandal | Reuters

Why is the FSCS paying out (with some uncertainty) on Keydata - Lifemark "investments" when in the opinion of many in the case of adviser involvement the advice was flawed in the first place?

Is it fair and reasonable that Independent Financial Advisers (IFAs) who avoided these products for good reason should compensate the customers of those who did sell these esoteric and opaque "investments"?

Inside Britain’s deathbonds scandal | Informed Choice

2010-09-29T23:25:00.000-07:00

Inside Britain’s deathbonds scandal Informed Choice

I support Martin Bamford on this issue

A test for Turner | Opinion | Money Marketing

2010-09-29T08:25:00.000-07:00

A test for Turner | Opinion | Money Marketing

Dear Lord Turner

Godfrey may have had a few glasses of wine too many but the end result is that he did speak his mind and he was right to question the efficacy of your institution.

I advise you and Hector to keep an eye on Mike Fenwick's blog because it may (more likely will) become your undoing, 'your' as in the "collective intellectual failure".

"I hope you will not be too disappointed"