Friday, October 9, 2009

FSA No.10 Petition - your vote counts!

FSA set to destroy independent financial advice
for all but the wealthy

Please excuse the general nature of this email sent to all in my address book but this is a matter of substantial importance to all UK taxpayers and their families. There is not a man, woman or child in this country who is not worse off today thanks to what the banks have done, through their recklessness, and through what the Financial Services Authority has failed to do by not regulating them properly. In addition we will all be considerably worse off in the future for the same reason. Our taxes have been used to bail out the banks and the Government has been forced to borrow - in our name - to fund the rescue of this country's financial system. We, our children and grandchildren will have to pay for the recklessness and greed of those who have irresponsibly ruined the UK's banks.

Despite this fact, the FSA, through its so-called Retail Distribution Review, is proposing measures that will leave most consumers of financial services at the mercy of the very banks responsible for this debacle.

Lord Turner of Makebelieve is at it again. The FSA is introducing new rules for Independent Financial Advisors (IFAs) that will probably drive half of the 20,000 or so IFAs out of business by 2012. The requirements of the FSA's new Retail Distribution Review (RDR) will make life impossible for the independent adviser. Ironically, the FSA is supposed to protect the consumer from biased financial advice and yet the Retail Distribution Review will drive all but the wealthy clients into the arms of the same big banks who are responsible for most consumer complaints. 59% of these complaints are about banks as against 3% complaining about IFAs.

Once again the FSA is seeking to destroy the UK financial services sector rather than improve it. The FSA is failing effectively to regulate the big banks and driving more consumer business into their arms. Not, of course, that advice from your friendly banker is ever biased.

PETITION: Many in Financial Services now believe FSA policies have and will prove disastrous to both businesses and consumers alike - we invite you to sign the following no confidence petition:


Further Comment

"There's a worrying possibility that the FSA is about to kill off independent financial advice in the UK for all but the wealthy. I do hope I'm wrong. I'm not convinced most people will want to pay for advice. The commission route has the advantage that you don't pay a fee each and every time you want information; you can go without the worry of laying out cash. What I find most galling though is that bank-based advisers - those primarily responsible for PPI misselling, endowment mis-selling, investment mis-selling and generally poor advice all round are still to be allowed to be remunerated based on the number of sales."

Martin Lewis, Money Saving Expert, June 2009

"I am not paranoid enough to believe that the FSA has a hidden agenda to do away with small IFAs, but the law of unitended consequences may well mean that this will be the result. This is especially the case when set alongside the myriad of other proposals that are costing some £430 million to set up, with ongoing fees of £40 million pa thereafter, a mind boggling amount of cash."

Janet Walford OBE, Editor Money Management, Sept 2009

"The Financial Services and Markets Act does not permit the FSA to cancel an authorisation simply because the FSA has changed its views on what the appropriate qualifications should be….It is one thing to impose new rules for new entrants to the IFA profession, it is quite another thing to disqualify someone who is already qualified."

Peter Hamilton QC


Best regards

Simon Mansell BA (Hons) Law
(Managing Director)

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