Industry news and views from Panacea and our partners.
Adviser Letter of the Week_
Distribution of Retail investments:
Since 1979, the Plain English Campaign has been campaigning against gobbledygook, jargon and misleading public information. They have helped many government departments and other official organisations with their documents, reports and publications believing that everyone should have access to clear and concise information. Many providers have a Crystal mark on their documentation reflecting their support of plain English. Clearly this does not apply to the FSA.
IFA letter of the week- Gap Fill fog cut through
All of us have been trying to get to grips with what we are / not required to do RDR / CII / Gap fill wise. We have all spoken to various people at various organizations and still we have been as clear as mud as to what we are supposed to do next.
IFA letter of the week
I aim to start 2011 as I did 2010 and that is by being an RDR bore, so here goes. I find it revealing that when the FSA seeks to use research date in support of its proposals it conveniently ignores the alternative interpretations that are frequently placed on the same data by the researchers.
Norwest Recruit - RDR
IFA Letter of the week - I wonder if it is at all possible to be rational on this topic without some people getting completely hysterical. Let me take a few of the popular arguments.
ODE to RDR
IFA letter of the week.... In the Beginning was the Plan; And then came The Assumptions;And the Assumptions were without form;And the Plan was completely without substance;And the darkness was upon the face of the IFA
The Ethical Partnership - The Retail Distribution Review (RDR) - my thoughts
The Treasury Select Committee has called for written evidence about the changes to the regulation of independent financial advisers.
Last night's Commons debate: the FSA Leviathan is unconstitutional????
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.
Retail Distribution Review - Problems & Solutions
IFA letter of the week. The Retail Distribution Review (RDR) appears to offer solutions to matters which the FSA has identified as problematic within the industry.
Help required
An IFA member needs some of your feedback soon please. "Having recently received an outrageous Ombudsman FOS decision on a specific case. Is there anyone out there that has in the last 2 years had an adjudication judged in their favour, whereby a client complaint about stock market falling at or around NRD or in retirement.
Open letter to Prime Minister David Cameron
I attach a self-explanatory open-letter for your kind attention. Being an open letter, of course, I will circulate your response within the IFA community and to the financial press. I do so because the subject matter is dear to the hearts of thousands of people.
The silence of the networks
IFA letter of the week. If an IFA's business has income of say £100K 50/50 initial and trail and a Network takes 15% then the Network earns £7,500 on initial and £7,500 on trail i.e. £15K per IFA member.
Savings in a world of volatility & cuts
The only relative certainty in today's economic environment is volatility and spending cuts. With employment uncertainty there is increasing emphasis on retraining and learning new skills to improve an employee's employment prospects.
STOP PRESS
This link will take you to the latest call to arms. The requirement and focus must now be on a "full" three hour debate in Parliament. Hoban will find it a little harder next time when he has three hours of it.
IFA letter of the week
I found the article 'It takes two to tango' on the FOS particularly useful. Luckily I have not, so far, had any complaints myself which have gone to the FOS, but everyone who has given advice at some time can consider it a distinct possibility these days as folks have become more litigious.
Alan Lakey - IFA viewpoint on the savings culture
What products or services would you like to see from providers to help encourage your clients to invest? Product design has been focusing on large single premium business yet the savings gap confirms that it is the lower net worth sector that no longer saves and this is partly due to the lack of regular saving products.
IFA letter of the week - CCL renewal - 1310% increase
My CCL is not due for renewal until 4/2012. But this morning I was audit checking my licences and looked at their site. I could not believe the cost for renewal has increased to £480 for sole trader and £970 for a partnership!
Launch of The IFA Hub - Giving your vision a voice
Never before have the views of IFAs like you mattered as much as they do now. Never before has such a way of doing it been brought together in one place. We all know the challenges that the smaller, regulated IFA faces in today's economic and regulatory climate.
RDR letter to send to MPs
IFA letter of the week - Hi all, I've left the lawyers out of this. I'm up for spending a certain amount of time and money on the legal angle but you and I know that: 1. Litigation is always expensive; 2. Most IFAs won't pay a penny towards it or spend a minute of their time on it, but will very happily watch us flog ourselves to death;
Shouldn't you be considering a bulk transfer?
If an onshore, regulated alternative to an offshore, unregulated fund is available shouldn't you be considering a bulk transfer? We believe that a buy and hold strategy that passively tracks indices is the best way to create wealth in the long term. We also believe that few investors stick to the strategy as they should.
Scottish Widows - Productive marketing pays dividends
There are two main challenges for marketing: how to find the time to organise it and how to maximise its productivity. The case study summarises how to invest a day to overcome these challenges and achieve commitment to the plan.
Prevention is better than cure
Prevention is better than cure... We're an irrational bunch - investors that is. We always will be; we cant be cured. We seem to go out of our way to destroy our long term wealth prospects. We bottle it when markets fall, sell and then miss the recovery. A passive or active strategy - it doesn't matter, our irrational
CGT dilemma for those not keen on multi-manager funds
CGT dilemma for those not keen on multi-manager funds - By Jeremy Askew, Conduit Financial Solutions. Investment and financial planners often ignore multi-manager funds because they do not believe they offer value for money. Where the manager is providing real value it's hard to argue against them.
Ethical Investment: A Wolf In Sheeps Clothing?
Ethical Investment: A Wolf In Sheeps Clothing? It seems there are a lot of cynical people out there who are not convinced that ethical investments are the real deal. Not surprising really because the mistake often made is that ethical investment must be perfect - which of course it isn't!
Time for Life Settlement Funds to grow up?
High, smooth, uncorrelated, and risk free returns. Sound familiar? Sounds like a life settlements promotion to us. Only a handful of years ago few IFAs were even familiar with longevity as an asset class, now retail money is pouring in like there's no tomorrow.
CI Transformation and the role of the adviser
Critical illness insurance has been undergoing a gradual transformation, which may have escaped the attention of casual observers. During the 1990s the product providers were caught up in a numbers game where new conditions were constantly being added, seemingly with the sole intention of appearing superior through the sheer volume of conditions.
Adviser letter of the week
Dilemma for those not keen on multi-manager funds. Investment and financial planners often ignore multi-manager funds because they do not believe they offer value for money. Where the manager is providing real value it's hard to argue against them.
Compliance tip June - The small firms financial crime review
The Financial Services Authority recently published their report into the financial crime systems and controls in small firms. The review undertook visits to 159 small firms across the retail and wholesale sectors. It covered three main areas: Anti-money laundering and financial sanctions; Data Security; and Fraud Controls.
Resources Compliance - Compliance Tip - May 2010 - References Referenced
The appointment of an approved person by a firm has always required that firm to establish that the individual is 'fit & proper' to carry out the desired controlled function(s). There are however also FSA requirements for the ex-'employer' of that individual to follow and some changes were made to these processes in summer 2009 as part of the approved person changes made by PS09/14.
Compliance Tip April 2010 - Sale and Rent Back Activities
The SRB interim regime commenced on 1 July 2009 and firms already carrying on SRB activities should be interim authorised to do so by FSA. From 30 June 2010, the interim authorisation regime for SRB business will come to an end and will be superseded by the full regime.
Compliance Alert - March 2010 - Traded Life Policy Investments
The FSA uses the term Traded Life Policy Investments (TLPIs) as a collective term to describe any product that invests in Traded Life Policies, Life Settlements or Viatical Settlements. In simple terms products based around the secondary market for life insurance where a secondary group or intermediary buys, sells and packages these policies.
Compliance Tip - February 2010 - FSA client money & assets report
Following an earlier 'Dear Compliance Officer' letter in March 2009, FSA have been carrying out further review work in the client assets arena. They have now published a further 'Dear CEO' letter for smaller firms and have also published a Report that contains observations from their most recent firm visits to a range of investment firms and insurance brokers. This letter will require recipients to review their compliance with the Client Asset Sourcebook (CASS).
Compliance Tip January 2010 - Disclosure of Compensation Limits Information
Back in April 2009 FSA issued Policy Statement PS09/7 which amended the compensation limits available from the FSCS. These changes take effect from 1 January 2010 and firms must ensure the disclosure documentation which they provide to clients is amended to show the correct information from that same date.
TIFAF - Treat IFAs Fairly
There is considerable concern that the FSA is not treating IFAs in the same way that it is seen to treat banks. Feelings are running high that week after week small IFAs are seen to be falling under cosh- with good reason we assume- yet nobody hears of a bank, its directors or staff being the subject of disciplinary actions such as removal of permissions, after all what does a fine mean for a bank?
Is the FSA acting ultra vires - beyond its powers?
"The Financial Services and Markets Act does not permit the FSA to cancel an authorisation simply because the FSA has changed its views on what the appropriate qualifications should be .It is one thing to impose new rules for new entrants to the IFA profession, it is quite another thing to disqualify someone who is already qualified.
Pension switching thematic review; is an axe about the fall?
In December 2008, the FSA released its findings on pension switches. Its findings were such that they widened the breadth of the review to a broader population of firms carrying out such business. It also published guidelines of 'good practices' - defined by the FSA as evidence that a firm has gone beyond its rules and principles - and 'poor practice', by analogy, found in firms whose standards fell below the FSA's rules and principles.
Alternative dispute resolution
A 'compliant' alternative to FOS: This is where the compliance issue sits in terms of being able to use an alternative dispute resolution process.
Sander's view
When taking a matter to court, your legal representation has an overriding objective first to the court - not to mislead the court - and secondly to the client.
TIFAF, (treating IFAs fairly) and FOS
One hears many horror stories from IFAs about the actions and methodologies of the FOS, that it is not operating a level playing field, that it operates more along the lines of a sales targeted call centre with the sole aim seeming to be the generation of revenue from case fees.
Jane's role
My name is Jane Sanders, I am a barrister in training and I left FOS in January 2008, after 16 months of life as a hallowed 'adjudicator'. All of you in financial services are no doubt more familiar with FOS's horror stories than I. Well, I thought the learning curve whilst at FOS was steep; whew! in the 9 months since being on the 'other side of the fence' I have been regaled with enough stories about client IFAs experiences on the receiving end of the FSA's regime to make my hair curl, and which would have seen lesser mortals running for the hills.