29th November 2010

Last night's Commons debate: the FSA Leviathan is unconstitutional????

“Knowledge comes, but wisdom lingers. It may not be difficult to store up in the mind a vast quantity of face within a comparatively short time, but the ability to form judgments requires the severe discipline of hard work and the tempering heat of experience and maturity”.  Calvin Coolidge

Last night's Commons debate was a revelation to watch. MPs from both sides of the House were united in defence of the thousands of small IFAs who feel that the FSA has ridden RDR style roughshod over them, having no regard to their rights and expectations and viewing their loss in the community as simply “loss of capacity”. 

Harriett Baldwin simply stated at the start of her six minutes “Wow”! In concluding, Mark Hoban, as Coolidge may have observed “didn’t say much but when he did, he didn’t say much”!

In case you missed it, here is the Commons transcript – that will no doubt raise spirits across the small IFA community on a very cold day. This was the clearest signal yet to the FSA that the House of Commons is about to take back control, requiring the FSA to recognize the powers of Parliament take precedent over the powers of the FSA.

What is next? Well to find that out, we have arranged a special RDR session on the 20^thDecember, hosted by M&G to explore what the New Year holds. Mark Garnier MP, Harriett Baldwin MP, Richard Hobbs and Peter Hamilton will attend and answer your questions.

To register simply click here

After all the drama of last nights debate, it was very timely to receive this letter that I suspect provided some food for thought to those MPs fighting for the “small guy”.

Dear Panacea

I attach a copy of a paper I have sent to MPs. I have deliberately written to encourage MPs who are uncertain on technical issues to realise something has gone badly wrong and hopefully press for a fuller investigation, as the danger is that things may peter out after Monday's debate.

The main thrust of the paper is an argument that the FSA is unconstitutional. This goes beyond the RDR. But I think it could be really useful to the narrower RDR campaign as it is now clear that in divisions on recovering powers to the Commons a large majority of MPs will vote for this. This, I think, is one area where the Whips have lost control. So if the FSA issue becomes a constitutional issue, the FSA will lose. The constitutional issue is important as however much noise was made on Monday the FSA could try to ignore it.

Yours ever

Joe Egerton

Ignacity

'The FSA - An Affront to Parliament' is written by Joe Egerton.

Joe ran Justice in Financial Services that obtained some concessions (notably free access to the Tribunal) when FSMA went through and has worked on the case that is now in Strasbourg on FOS and its refusal to hold oral hearings and allow cross-examination. Joe now runs Ignacity providing advice on complaints and the FSA including S166 Reports. Joe can be contacted on joe@ignacity.info.'

RDR, FSA/FCA