Industry news and views from Panacea and our partners.
Panacea Comment_
Standard Life's Pension Sterling Fund revaluation
A letter recently received relating to Standard Life's Pension Sterling Fund has advised that it is now subject to a 5% revaluation. This fund was promoted as a home for investors money when the short-term outlook for equities, fixed-interest securities and property is uncertain, yet I understand the fund has 13 per cent invested in non-conforming residential mortgage-backed securities, while only 12 per cent in cash!!!!
A little bit of history repeating itself
Not quite, as no one is in jail- yet! I read with some interest today about banking crashes and the ways in which regulators and governments of the day dealt with such things. In particular, one article was about Nick Leeson, the rogue trader whose unchecked risk-taking caused the biggest financial scandal of the 20th century caught my eye.
Its not my fault, but it is me that pays
Having worked under 4 different regulators as an IFA, I can speak with some experience about how, over the years the onus of responsibility for when things go wrong and therefore in the eyes of the regulator of the day, need to be put right, falls and continues to fall squarely on the shoulders of the IFA firm that gave the advice and/or sold the product.
Help in turbulent times
I am sure that most, if not all of us, are pleased to see the end of 2008 but look forward with some degree of trepidation, toward 2009. Small businesses in general are having a tough time, but, small regulated businesses have additional minefields to pass safely through in 2009.
Panaceas role is to join up the loose connections between the many thousand small, directly regulated Independent Financial Adviser firms and product providers. Over the years, smaller IFAs have lost the face to face support resource that existed for the benefit of customers. The aim is also to correct the support and service imbalance with providers currently in favour of Networks and larger national IFA firms. we have over 1000 members involved with Panacea and this is number is growing.