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Home http://www.qualifying-recognised-overseas-pension-scheme.com

Government pushes generic pensions advice as 'IFAs deter saving'

"The Government has blamed independent financial advisers rather than individuals for the lack of personal savings motivation, by suggesting the "huge" cost of advice and the previous mis-selling scandal all deter people from putting money aside."
____________________________________

Passing the buck is easy

'Reasons Why' There is a 'savings gap'
The main reasons are:

bullet

Lack of Regulatory Proportionality.

bullet

Retrospective legislation.

bullet

Retrospective taxation of pensions.

bullet

Madness of the 1% world, there is insufficient margin to reward companies and advisers.

bullet

Abject failure to admit that people are 'persuaded' to save. Most don't save voluntarily. 

bullet

The decimation of salespeople through a combination of the above.

 

REAL Solutions to the problem
These are simply:

bullet

Bring in Regulatory Proportionality.

bullet

Remove Retrospective legislation.

bullet

Remove Retrospective taxation of pensions.

bullet

Remove the madness of the 1% world, ensure there is sufficient margin to reward companies and advisers.

bullet

Admit that people are 'persuaded' to save. 

bullet

Bring back the armies of salespeople through a combination of the above.

UNREAL Solutions to the problem
These are simply:

bullet

Compulsion will lose votes.

bullet

The FSA website won't persuade people to save.

bullet

A piece of software won't persuade people to save.

bullet

Making products 'cheap' won't persuade people to save.

bullet

Wasting millions on review after review won't solve anything.

bullet

Advice must be paid for, or there won't be anyone left to persuade people to save.

bullet

   http://www.qualifying-recognised-overseas-pension-scheme.com

Dear Mr Kenmir - Re: LAUTRO 'assumed expenses'

Dear Lord Falconer - Re: Unnatural Justice

Important legal case HERE

Responses to ABI Commission Consultation Document From REAL people to UNREAL people

Search for an IFA click HERE (READ IT CAREFULLY)

Opinion of Anthony Speaight QC:

"There are growing concerns that the pendulum of consumer protection has swung too far in the case of the Financial Ombudsman Service and small independent financial advisers. The FOS appears regularly to be exercising its discretion to adjudicate upon claims against small IFAs up to its maximum theoretical jurisdiction of £100,000. There is rarely an oral hearing. And there are good reasons to believe that sometimes FOS makes substantial awards in cases which would be rejected by the courts. On other occasions compensation seems to be calculated in a more generous manner than a court would assess damages. By reason of very large excesses and other insurance shortcomings some such IFAs have no insurance which responds. There is no appeal on the merits.

Such a system would be tolerable if the maximum award were modest say £5,000 (which is the maximum summary compensation under the legal professions’ schemes for "inadequate professional service"). It would also be tolerable if, as is the case with the summary system of adjudication in the construction industry under the Housing Grants Construction and Regeneration Act 1996, there could be a complete rehearing before a court. And it might even be tolerable if it were applied only against very large companies.

But an unappealable, compulsory, summary jurisdiction against small traders making awards as great as £100,000 is, in my view, both wrong in principle and producing injustice in practice."

(No providers will be hurt in the making of this movie, in fact they can join the cast.)

YES! We agree with this legal expert HERE

Did you know? - Commission costs an average of 3% within investment business, compliance costs 9%... is the FSA adding value? Considering it costs investors three times more than the IFA distribution channel any sane person would come to the conclusion that regulatory interference is counter productive.

Have the product providers mistakenly decided that IFAs are extinct? That they are a 'dead parrot' and that multi-ties are the way forward despite the fact that they couldn't make one-on-one tied agents pay? Why is that? Why are they so short-sighted? Look at the feeding frenzy surrounding estate agents, look at all those fruitless attempts to secure distribution using massive handouts to ARs and the 'protection' debacle. It will all end in tears yet again and what did the regulators do? Nothing, quite simply nothing.

Legal & General Tribunal Verdict HERE

The Regulatory Disciplinary Council (RDC) was chastised by the 'independent' FSMA Tribunal.

It appears they were too eager to impose too heavy a fine on the provider, the Tribunal has concluded that the fine imposed was too big and their procedures were flawed.

Just another example of the RDC acting as 'whipping boy' for the egos at the FSA and the Treasury.

Is the RDC keen to increase the fines because of the 'black hole' in the FSA pension scheme? It is the easy way to fill the coffers! Just look at the Shell 'fine', the poor shareholders feel the pain of regulatory excess once again. How much did L&G spend on defending this case?

Dear Regulators - Look before you leap and expect more challenges to your bully boy tactics.

Complaint to Callum McCarthy - FSA

Complaint to Walter Merricks - FOS

There but for the Grace of God, goes God.

Power tends to corrupt; absolute power corrupts absolutely An observation that a person's sense of morality lessens as his or her power increases. The statement was made by Lord Acton, a British historian of the late nineteenth and early twentieth centuries.

Arrogance: Making undue claims in an overbearing manner; that species of pride which consists in exorbitant claims of rank, dignity, estimation, or power, or which exalts the worth or importance of the person to an undue degree; proud contempt of others; lordliness; haughtiness; self-assumption; presumption.

Haughty: Proud and disdainful, like a waiter or a Civil Servant?

Nepotism: Lord Falconer will risk a breach with senior members of the judiciary today (12/01/05) when he appoints his close friend and former pupilmaster as president of the high court's family division. England's top four judges are said to be opposed to Sir Mark Potter's appointment to the senior post. This Government is rife with favouritism.

RATS deserting a sinking ship? TWO senior FSA personnel leaving so far in 2005, David Severn is off to AIFA (no longer interested IFAs?) and Andrew Procter is sailing away with Deutsche Bank. No doubt there is a conveyor belt producing suitable replacements somewhere. Probably around the corner at Clifford Chance....

IS LAW LAWFUL? Under the Freedom of Information Act the IFA Defence Union asks for sight of counsel's opinion used to support Gordon Brown's declaration that the Financial Services and Markets Act is compatible with the Human Rights Act 1998

David Severn was the driving force behind January 2002's CP121 which proposed that all independent advisers be compelled to charge fees.

A watchdog that looks more like a pet peke FSA and the splits ... Financial Times - London,England,UK ... Callum McCarthy, the chairman, told a parliamentary committee in the summer it believed it had uncovered "collusion on a very substantial scale. The problem with demanding an amount of money based on the situation two years ago (or even two months ago!) is that prices can go up as well as down, this is something the media, the regulators and Government ministers do NOT understand.

Malfeasance, noun: evil-doing, wrong-doing (rare); an illegal deed, especially by an official (law). The IFA Defence Union have 'project alpha' underway, this will charge certain Directors and Officers of the regulators with malfeasance. (Going to work somewhere else is no escape!)

Misconduct in Public Office, doing nothing to right a wrong is equal to doing something wrong. Many regulatory staff are guilty of this, the IFA Defence Union is tracking down all the perpetrators going back to 1987.

New rules could end independent advice ?? To date we have had Legal & General, Barclays and now Nick Bamford predicting the death of the IFA. The demise of IFAs has been on the 'wish list' of insurers, banks and building societies since 1988 but all we have seen is a steady decline in the total number of advisers with an ever increasing market share being taken by IFAs. The problem now is that we have a Government and a regulator hell bent on removing independent advice from the market, but many IFAs now feel that the end is nigh for the crackpots at the Treasury and their puppets at the FSA.

The big issue here is: How many providers will still be in the market in two years time? How many IFAs will still be trading in two years time? Does the regulator care? The regulator will only start to worry when there are SIX authorised firms left, there won't be many 'fish in the barrel' to shoot by the time they are finished, they think..

Falconer call to end claims culture: A Department for Constitutional Affairs spokesman said: "This is a complex and controversial issue where the Government cannot provide all the solutions". OH YES IT CAN!! Here are the simple solutions:

  1. Follow the lead of our astute Irish neighbours who require claimants to sign an affidavit.

  2. Penalise those who tell lies.

  3. Restore some burden of proof to the complainant.

  4. Charge the complainant a fee that is refundable if successful.

Simple solutions? Of course they are but why can't they be implemented? Why is this so painful?

KEEPING THINGS OFF THE BALANCE SHEET!: Keeping Network Rail off the balance sheet by calling it a 'public company' (of course it is Gordon) is not even barely credible. How about moving 500 people from the Bank of England, 300 from the Treasury, 500 from the DTI and more than a few really expensive jobs from GAD, yes let's stick them in something that isn't on the balance sheet because it is 'independent' of Government (a likely story!)... where shall we bury this cost? I KNOW, let's send them all to the FSA so that the FS industry can foot the wages bill and the pensions entitlement, they may even get a hefty pay rise.. what a wheeze!! And nobody noticed.

ENDOWMENT SHORTFALLS, WHERE ARE THEY?: A Scottish Amicable (now Prudential) policy was projecting a shortfall right up to the maturity date despite the fact that the annual bonus statement showed a GUARANTEED minimum payment in excess of the mortgage amount of £15,000, it matured at over £23,000!!! See the documents HERE and see the IFA's comments HERE, and there's MORE see a Guardian maturity HERE. Where are the ACTUAL shortfalls? If they relate to policies sold between April 1988 and January 1995 the regulator is responsible. Tell the Treasury Select Committee, the Consumers' Association (How many consumers DO they represent?), the FSA, The FOS, the FSCS and the darlings in media.

GUILTY: IFAs are being found guilty of 'crimes' they did not commit by a quasi-judicial system that often makes determinations that are not even within its jurisdiction, all this without a fully independent fair trial. If this is not in breach of any EU laws or fundamental rights I fear for the future of all EU citizens. To deny even one person’s basic rights is not only unjust but also threatens our own rights. Comparisons to the rise of the Nazis might be exaggerated but there is a genuine threat to democracy involved in removing rights on which it is based. So it is worth remembering the words of Pastor Martin Neimoeller – a survivor of Dachau concentration camp; “They came for the Jews. I was not a Jew. So I said nothing. Then they came for the Catholics. I was not a Catholic. So I said nothing. Then for the trade unionists and industrialists. I was neither. So I said nothing. Then they came for me - and there was no-one left to say anything.”

STATING THE OBVIOUS: Since 1997 the savings culture that was nurtured by IFAs has hit the buffers, a large proportion of the 'new' pension contributions have been transfers from PPPs to 'Stakeholder Friendly' contracts. Evidence HERE and HERE

BAD NEWS: 60% of small IFAs have vanished since 2001 and 80% of those still in business August 2004 will be forced out by the end of 2005. Nobody cares, not even the life offices who grew fat on the back of the IFA's efforts and then threw it all away. The Government don't care, the FSA don't care and the banks certainly won't weep. Collusion? Possibly...

VERY BAD NEWS: Sole Proprietor and Partnership IFAs are being hounded in retirement and on their sick beds by a system that is neither fair nor workable. Invariably the real problem is that the products could not possibly 'do what it said on the tin' because the premiums were set using fictitious charges between 1988 and 1995, all thanks to the FSA (was SIB and LAUTRO). This applies to Mortgage Endowments, Pensions Transfers, Free Standing Additional Contributions (FSAVCs) and SERPS 'Appropriate Pension Plans' or 'Contracting Out'.

SURPRISED?: Not really, the majority of UK regulated firms believe the regulators are incompetent. Many large City institutions including those based overseas want better quality staff do deal with, wasting time and getting facts mixed up with fiction is a major issue.

MORE BAD NEWS FOR THE REGULATORS: A group of major IFAs and networks is being formed with a view to a desperate push for reform of this monstrous piece of legislation, if anyone is interested please make contact with The IFA Defence Union www.ifadu.co.uk

ENVIRONMENTALLY FRIENDLY REGULATIONS?: Not likely, insurance brokers are using FIVE times as much paper as they used to before the IMD was 'gold plated' by our beloved regulator. Who benefits? Not the trees, not the brokers, not the consumer but the FSA have more staff!! A massive job creation scheme!

Endowments - The Facts HERE. Letter to Merricks HERE

IFASOK is the place to find information relevant to IFAs.

Treasury Select Committee (Selected by who?) Groucho Marx had the whole thing figured out :- "Politics is the art of looking for trouble, finding it everywhere, diagnosing it incorrectly and applying the wrong remedies."

NOT the FSA HERE - Bullies receive a good smacking

Burn it Down An article by Eric Bettelheim of Mischon de Reya HERE This was a tongue in cheek 'solution' to the ills of what was once one of the finest FS industries in the World. There is another way.

BBC MONEYBOX Reporting of FOS/FSA matters is Biased, a submission by Alasdair Sampson who is a spokesman for the Adviser Defence Union (www.ifadu.co.uk) was not used because he insisted that his contribution should be given a balanced and accurate presentation. BBC response HERE

NANNY STATE MAKES ANOTHER NUISANCE CALL HERE

ABSOLUTELY TRUE!!! HERE TELL YOUR MP!!

Does this ring any bells? HERE

Professional Indemnity Insurance 2003 HERE

Which? Consumers Association Endowment Claims Complaints

TAXPAYERS face a £100 billion bill The sums don't add up!

IFAs ARE OK AFTER ALL!

HERE! AND HERE!

When you consider that IFAs have had over 50% of the market for many years this is pretty damning evidence supporting the need to maintain and even PROMOTE polarisation rather than pander to the lobbying of the loudest banks and direct sales channels. Wasn't Howard Davies an accountant for Richard Branson???

State-run final salary scheme to shut

The Graduate - Careers Advice

Government pushes generic pensions advice as 'IFAs deter saving'

"The Government has blamed independent financial advisers rather than individuals for the lack of personal savings motivation, by suggesting the "huge" cost of advice and the previous mis-selling scandal all deter people from putting money aside."
____________________________________

Passing the buck is easy

'Reasons Why' There is a 'savings gap'
The main reasons are:

bullet

Lack of Regulatory Proportionality.

bullet

Retrospective legislation.

bullet

Retrospective taxation of pensions.

bullet

Madness of the 1% world, there is insufficient margin to reward companies and advisers.

bullet

Abject failure to admit that people are 'persuaded' to save. Most don't save voluntarily.

bullet

The decimation of salespeople through a combination of the above.

 

REAL Solutions to the problem
These are simply:

bullet

Bring in Regulatory Proportionality.

bullet

Remove Retrospective legislation.

bullet

Remove Retrospective taxation of pensions.

bullet

Remove the madness of the 1% world, ensure there is sufficient margin to reward companies and advisers.

bullet

Admit that people are 'persuaded' to save.

bullet

Bring back the armies of salespeople through a combination of the above.

UNREAL Solutions to the problem
These are simply:

bullet

Compulsion will lose votes.

bullet

The FSA website won't persuade people to save.

bullet

A piece of software won't persuade people to save.

bullet

Making products 'cheap' won't persuade people to save.

bullet

Wasting millions on review after review won't solve anything.

bullet

Advice must be paid for, or there won't be anyone left to persuade people to save.

 

http://www.hotfrog.co.uk/Companies/Saverjustice_6265843/Mis-sold-mortgages-167271

http://www.saverjustice.com


The IFA world as we know it, SCORCHED EARTH!

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Professional Compensation Claims

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IFASOK is on the case.