Industry news and views from Panacea and our partners.
Regulation_
Panacea Adviser and the HEATH REPORT
Do you want to have your voice heard? Panacea Adviser and The Heath Report would appreciate if you could take this short survey, results of which will be issued in early 2015 to all interested parties, including the FCA ad Treasury Select Committee.
Sleepwalking into Oblivion
The IFA sector needs to wake up to the realities of the current market before it no longer exists and there is no shortage of wake up calls.
Under every stone lurks a politician. Aristophanes
The 28th October was an interesting day, and it was the day that I realised that politicians could not care less for anyone, let alone financial advisers. As the late Max Bygraves said, I wanna tell you a story.
Under every stone lurks a politician. Aristophanes
The 28th October was an interesting day, and it was the day that I realised that politicians could not care less for anyone, let alone financial advisers. As the late Max Bygraves said, I wanna tell you a story.
Misdemeanor, cost of conduct and those poppies
RBS announced that it has set aside a further £780m to cover the costs of conduct issues, including the PPI miss-selling scandal.
Hello darkness my old friend. The sound of Davis Enquiry silence.
Earlier this year, seven months ago in fact, the FCA independent directors appointed Clifford Chance litigator Simon Davis to conduct an inquiry into the announcement via The Telegraph, by Clive Adamson, of an investigation into the insurance industry on the 27th and 28th March.
Financial Social Media UK: Series 1 FCA Guidance Social Media
Guidance consultation: Retail investment advice - Clarifying the boundaries and exploring the barriers to market development
Cobbs paradox
Cobbs Paradox could be another descriptive for the regulation of financial services in the UK today. Cobbs Paradox states, We know why projects fail; we know how to prevent their failure so why do they still fail?
Back seat drivers
I had a catch-up meeting recently with Keith Richards (not that Keith Richards) and the conversation turned to rebuilding trust in the industry along with some thoughts on the rights and wrongs of how best to do it.
FEIFA: How to manage that unknown risk
Given the amount of Brits that have emigrated, and those that will leave these shores in the near future, how can UK advisers protect themselves from client complaints by providing the option of transferring UK pensions into a Qualifying Recognised Overseas Pension Schemes (QROPS).
Foot Anstey: FCA issues warning to EEA investors practical points for firms
The FCA have warned investors in EEA Life Settlements funds that they should consider complaining against firms who advised them to invest before 1 December 2014.
Miracles happen, or is it just wishful thinking?
The restoration of trust in the industry is vital for its success going forward. But trust works both ways. Firms should have trust in the regulator and the regulatory process that should be nurtured by a mixture of clarity, fairness and pragmatism.
Advice 4 you
Earlier in the year we explored the Waterbed effect, a phenomenon that has the natural (not necessarily intended) potential, to squeeze one part of a complicated and complex regulated business model to cause a serious bulge elsewhere in the process.
APFA calls on FCA to reduce overly prescriptive regulation to improve innovation
The Association of Professional Financial Advisers (APFA) has responded to the FCAs call for input on the Project Innovate, calling on the regulator to reduce regulatory barriers in order to improve innovation among the advice profession.
Still Pete Tong at the FOS?
From the 7th July to 12th August this year, we conducted a survey amongst financial advisers asking them for their experiences of the Financial Ombudsman Service, its perceived fairness and how the overall complaint system could be amended in order to deliver greater efficiencies and fairness.
New APFA report explores the changing face of the consumer
The Association of Professional Financial Advisers (APFA) has published "The changing face of the consumer", the first in a number of reports looking at the future of the advice profession.
Still Pete Tong at the FOS?
From the 7th July to 12th August this year, we conducted a survey amongst financial advisers asking them for their experiences of the Financial Ombudsman Service, its perceived fairness and how the overall complaint system could be amended in order to deliver greater efficiencies and fairness.
Aegon shares plans in the event of Scotland voting for Independence
On the 18 September 2014 the people of Scotland vote on Independence.
So who exactly have the FCA had extensive industry engagement with on Social Media use?
In the early part of August we read with some interest the FCA consultation paper on Social media, and commented at the time The FCA has produced a consultation paper regarding its intent to impose rules on firms use of social media and customer communications. It is an interesting, and as usual dry, slightly confusing and condescending read. In light of this we made this FOI request as all did not seem right in its sourcing of input or reference sources to write the paper
FEIFA: The Unknown Risk
Those of us who have worked in this industry for any amount of time have experienced many business risks, and continue to do so.
TISA: New fit and proper person requirement
HMRC has introduced new legislation relating to the fit and proper status of scheme administrators.
APFA responds to Department of Health consultation on the Care Act
The Association of Professional Financial Advisers (APFA) has responded to the Department of Healths consultation on draft regulations and guidance for implementation of part one of the Care Act.
Own Goal Leads Up To 20m Consumers Losing Their Adviser
The Heath Review Editor, Garry Heath has published its interim report today and comments: We have published our first results today which shows that RDR has forced almost 7,000 IFA Advisers and 6,000 bank advisers to leave the industry leading to nearly 10m consumers to no longer having access to their adviser. In addition, between 3m and 11m clients may find their adviser no longer has the capacity to service them.
TiSA: Taxation of Pensions Bill Technical Consultation & Draft Guidance
To allow for the new pension flexibilities from next April, a number of changes need to be made to the existing pensions tax legislation in Finance Act 2004. These changes will be made in a Taxation of Pensions Bill which will be introduced in the Autumn.
Publication of draft regulations and discussion document for Common Reporting Standard
Draft regulations to implement the CRS, and a discussion document to consult on those regulations, are now published
Intelligent Partnership: IFAs and Crowdfunding: What you need to know
Its likely youve already come across the term crowdfunding. This explosive new form of finance, which grew to a £1bn+ industry in the UK in 2013, is set to grow by over 60% this year. Household names, such as Hugh Fearnley-Whittingstall, are turning to this form of alternative finance to raise capital to fund their businesses and ideas - Hugh recently raised over £1m for his River Cottage business.
Adviser letter of the week
Jonathan Purle who helped me get the attached accepted by the FCA has kindly agreed that his work can be made available for the common good.
Longstop matters - who cares
I exchanged some tweets, phone calls and e-mails over the last few days regarding the e-petition for Fair Liability for Financial Advice.
Where the FCA is getting it wrong on enforcement
Those unfortunate enough to have engaged with the FCA's enforcement team can be left frustrated by the process, not just the outcome.
BNY Mellon: Full disclosure: the FCA answers your questions
The Financial Conduct Authority's head of savings, distribution and investment policy David Geale answers advisers' questions on transparency, platform costs and independence.
Aegon calls for closer co-ordination of FCA Retirement Income Market Study, Budget Changes and the Guidance Guarantee
Aegon welcomes the FCAs decision to revise the approach to its Retirement Income Market Study in light of the budget announcements which will mean the retirement income market post April 15 will be dramatically different to that which exists today.
APFA: Cost of regulation for advisers near to half a billion pounds
Research conducted by the Association of Professional Financial Advisers (APFA) has found that the total annual cost of regulation for the financial advice industry is almost half a billion pounds.
Preparing for Life After Trail
A free guide from Panacea to help you understand what it means and what to do next. The adviser community and their clients are seeing a system that has worked quite well indeed for the mass market, and for very many years, being swept away.
The Heath Report Launches
A report has been commissioned by a group of industry leaders to determine how many consumers have lost their advisers due to impact of the Retail Distribution Review.
RDR - Lets get the numbers straight
There has always been a problem with the debate on RDR and that is the discussion has been bereft of reliable statistics - properly gathered and faithfully applied.
All sectors unite to restore confidence & trust
The Personal Finance Societys Mark Hutchinson looks at recent moves to inspire consumer confidence
M&G: Product Intervention
In this video Peter Grimmett, M&G Head of Fund Regulatory Development, describes the powers the FCA have when it comes to intervening in products they deem unsuitable for retail investors. Peter outlines what you need to know and how the powers differ from the FSA.
APFA: Ombudsman not taking on board adviser complaints evidence
New figures from the Association of Professional Financial Advisers (APFA) reveal that advisers feel the Financial Ombudsman Service (FOS) is at times failing to take their evidence into account when ruling on complaints, and does not always explain the reasoning behind its decisions.
TISA: Project steer from the Treasury on strategic proposals
TISA held a successful seminar yesterday on the key findings from Our Financial Future.
Aegon: Its time our profession moved on
A look at the FCA RDR review and the five fundamentals for every business that can make sure they have a service proposition that clients value and desire