Dear Mr Kenmir - Re: LAUTRO 'assumed expenses'
Dear Lord Falconer - Re: Unnatural Justice
Important legal case
Responses to ABI Commission Consultation Document From REAL people
to UNREAL people
Search for an IFA
HERE (READ IT CAREFULLY)
Opinion of Anthony
"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
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
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
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
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
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
which proposed that all independent advisers be compelled to charge
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.
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..
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:
lead of our astute Irish neighbours who require claimants to sign an
those who tell lies.
burden of proof to the complainant.
complainant a fee that is refundable if successful.
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
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.
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
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'.
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
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
Endowments - The Facts
HERE. Letter to Merricks
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.
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
NANNY STATE MAKES ANOTHER NUISANCE CALL
HERE TELL YOUR MP!!
Does this ring any
Indemnity Insurance 2003
Consumers Association Endowment
TAXPAYERS face a £100 billion bill The sums don't add up!
IFAs ARE OK AFTER ALL!
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: