Industry news and views from Panacea and our partners.
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Things to do in Davos
Apart from the possibility of finding that a night or two full board with lift pass, ski hire, flights and transfers to Davos may not be covered in full by the expenses allowance, FSA chairman Adair Turner has called for the creation of a new official body with powers to force banks to curb lending during financial bubbles reports Nicole Blackmore in last weeks Money Marketing.
You got mail - and someone else's too?
FSA RDR Research - Advisor Survey As many of you will know, the FSA is undertaking further research to assess the implications for firms providing advice on retail investment products of the proposed changes in the Retail Distribution Review (RDR) Consultation Paper CP09/18 published on 25 June 2009.
Left brain/right brain
CII Exams V ifs dip A short while ago I asked for feedback on the above topic and I also embarked upon my own review. I thought you might find my thoughts of interest, if not then just click delete.
Not so Secret World
The logistics of running an organization like the FSA are truly something to behold. Given it's enormous and ever growing field of operations it is no wonder that the seemingly insatiable fuel requirements from the financial services industry to run this "Leviathan" are sometimes subject to an element of scrutiny.
Occasional Paper 32, Charles River Associates and Commission Bias, or should it be
PanaceaIFA member Alan Lakey contacted me this week with some very interesting yet disturbing information. Occasional Paper 32, a relatively boring document happened to mention research into commission bias carried out by Charles River Associates in 2004.
What's good for the goose......?
Has Christmas come early for IFAs, shock High Court blow for the Pension Ombudsman? Money Marketing has just reported that the High Court has held that when determining disputes of law, the Pensions Ombudsman cannot take a less restrictive approach to time limits than the courts would take.
IFAPAC update from IFA member Neil Liversidge
Please click on the link below to a ready-to-run email. Please consider sending this to your MP. Money Marketing, which really is doing a brilliant job for IFAs, must be credited with the lead story most of the material is copied from their online story and the resulting blog.
Dismore replies
I am becoming increasingly concerned that the machinations of government in regard to the longstop issue. The conduct of those tasked to investigate its fairness leaves much to be desired.
A week in the life, this week IFA Alan Lakey
I have been fending off inquisitors demanding to know how I felt about AIFA stealing the Adviser Alliance policies in respect of the RDR. Actually, as I related to the enquirers, I dont have a problem with this because ultimately we are all on the same side. In fact, it has to be taken as a compliment, particularly as I have been banging this particular drum for ages.
Gloves off??
It is heartening to hear that the AIFA are at last taking seriously the concerns of their members, this is thanks in no small part to Dick Carne- a practising IFA who sits on the AIFA committee.
Tweet, tweet, to who?
PanaceaIFA is on Twitter. What is Twitter and how can it help you create awareness for your business?
It is a funny old game, as "Greavesie" would say
Money Marketing reported this week that Land of Leather chief executive Paul Briant was fined £14,000 for failing to properly oversee PPI sales. Senior staff at Alliance & Leicester, whose firm received a £7m PPI fine, were not hit with any personal penalties.
Still time to influence the RDR
The RDR consultation period ends on October 30th and whilst the proposals have triggered mayhem in the adviser ranks it seems that the response rate has been exceedingly poor. Advisers may be thinking that its a done deal and that any response would be pointless. Of course, if advisers adopt such an attitude it provides fodder for the inevitable retort that few advisers raised objections.
PanaceaIFA welcomes our latest community supporter F&C
PanaceaIFA welcomes our latest community supporter, F&C. Established in 1868, they are an ideal choice for those looking for an experienced asset manager. Professional and private investors alike choose us because of our expertise, commitment to high quality service and competitive range of performance-focused investments. As a service provider, our mission is simple: To deliver 1st quartile performance in all that our clients expect.
Dual Standards?
As MPs return to Westminster, the expenses row starts over again. It is with particular interest that I note MPs are upset about repaying some possibly irregular claims because they say the claims were made according to the rules and approved accordingly. To be forced to repay would be an application of rules retrospectively.
"Goddersview"
As I look back over nearly 40 years in financial services, I muse on the vast amount of money and time spent by people with limited experience and knowledge jamming their metaphorical umbrella into the spokes of the industrys front wheel.
Godfrey Bloom, MEP - banned
Godfrey Bloom, MEP for Yorkshire and North Lincolnshire has long been a champion of IFAs and his voice is often heard in the media as well as in Brussels. His views are not always well received but they are more often than not based upon common sense and reason rather than a rule book or politically inspired mantra. He also has had a career in financial services to draw experience from.
Meeting with MPs - why not try similar?
With regard to RDR concerns, on Friday 11th September 2009 a meeting was held between three Conservative Parliamentary Candidates and 20 prominent IFAs.
Welcome to the IPS Partnership
PanaceaIFA is delighted to welcome to the community our first SIPP and SSAS provider experts. The IPS Partnership was born in September 2008 as a result of the merger of two leading providers of Self Administered Pension Schemes; IPS Pensions Ltd and PAL Partnership Ltd.
How best to grow mushrooms. As we all know, the best way to grow mushrooms is in the dark and cover them with lots of good organic fertiliser
IFA Alan Lakey recently wrote to Hector Sants asking him what enquiries, reviews, analyses and/or research has been carried out enabling him to form his viewpoint "We were unable to find evidence of the extent to which the absence of a long-stop, on its own, was inhibiting investment in the sector".
Comfortably numb???
In this open letter exchange with George Osborne's office from IFA - Lyn Cooke one could be forgiven in thinking that the Conservative Party just do not understand IFA business models and how they serve the public. It seems that someone has been anaesthetising their awareness sensors. Lyn's letter, read the mail trail (click here) is an excellent example of standard replies being given to issues they appear not to understand or maybe do not even want to understand.
The end is nigh?
With the RDR Consultation paper very much in every IFAs mind, providers have all made great efforts to review the review and extract the key points for you.
Unfair Terms in Client Agreements
Many firms will be reviewing their client agreements in the near future the RDR and the changing regulatory landscape will mean that firms changing their business models will need to re-assess the contractual basis of the relationship that they have with their clients.
Is this a chink in FOS armour?
Alan Hughes - 10-Aug-2009 Firms should now consider asking the FOS to demonstrate how it has complied with its duty to consider what the former scheme would have done in all pre-2001 cases.
Stop Press - PanaceaIFA community is THE UKs biggest new business source of premium income for product providers!!
Providers start to smell the coffee as a result.
PIMS - Arcadia 2009
A week in politics, they say, is a long time. Three days at PIMS is a similar experience, spent anchored between Jersey and Guernsey with the industry great and good.
Strange days indeed!
Financial services, the Human Rights Act and UK law seem to be all operating in a vacuum. The result is that very odd anomalies occur to the extent that you could not make it up if you tried.
Human rights chief asks Myners why IFAs don't have long stop
This is such a contentious issue, particularly for retired as well as active small IFA firms who are not incorporated. They are suffering great financial hardship because they are unable in many cases to defend themselves against often dubious, opportunist claims going back 20 years or more where little and often no evidence is available to either defend or support such claims.
At last- some sense from a politician!!
Godfrey Bloom is a Euro MP and has some refreshing common sense views on regulation in general, the FSA and FOS in particular. Unusually, he has some industry experience, he was a Pension fund trustee advisor (to 1986), a Fund manager with Mercury Asset Management (1986-1992), a Financial research economist (1992-2004) and is a Member of the Institute of Economic Affair and the Institute of Directors.
Missing in action
A recent report from Abbey has blamed shoddily packaged mortgage cases for delays in its processing and says that at one point 65% of applications from brokers were not up to scratch.
"Look out kid; it's something that you did"!!
MPs are currently undergoing a morality examination by the media and those constituents they serve- for very good reasons and some may say about time too
Life on Mars
Even now, a very large number of major and an even larger number of minor "manufacturers" of financial services products who rely on the IFA sector for their product distribution, the world of the small, directly regulated IFA is akin to Mars.
FSCS stats and practices
Money Marketing has reported that the Financial Services Compensation scheme has paid out more than £33m to consumers as a result of claims on failed IFAs over the past financial year.
FSA, openness and the Freedom of Information Act
A number of our IFA members are becoming more and more concerned that requests for information, explanation or clarity under the FOI are being rejected. Why is this?
Now Read This!!!
Is this why "Principles" is to be replaced by "Outcomes"? There has been considerable concern and speculation surrounding the Financial Services and Marketing Act 2000 in particular in regard to whether this act is in breach of the Human Rights Act.
Goodbye "principles", Hello "outcomes"
Hector Sants, chief executive of the Financial Services Authority says the regulator will be moving away from a principles-based regulation towards a more "outcomes-based regulation"
The FOS must learn to live within the law.
A great article by Peter Hamiliton that should be read by all. Peter was the head of the legal department and company secretary of Allied Dunbar Assurance plc (formerly Hambro Life Assurance plc) where he dealt with the full range of issues confronting a modern unit-linked life assurance company and the life assurance industry in general, holding several industry appointments.
Fit for purpose - are licensed products the future
The FSA has entered the debate regarding the licensing of financial services products.
Watching the detectives - Pink Panther 3
I am not sure any more who is supposed to do what, who takes responsibility, who investigates who, why, who takes the blame and who pays. Last October, bank bosses were warned by the FSA over their inconsistent pay structures and told they can expect a visit from the City regulator before Christmas, did this happen?????
"Bankers" what next
With the US and UK in a financial meltdown over the last few months it is good to know that more evidence regarding the arrogance, greed and worse is now coming to light. Senior investment bankers, even now, clearly have no conception of what is or was right or wrong.