After three years, the FSA’s latest consultation paper on the Retail Distribution Review (RDR), published 25th June, is close to the final word, incorporating the draft Handbook test that rarely alters much in subsequent consultation. It is time therefore to judge whether these changes in the way the advice industry works will lead to significantly better outcomes for customers.
read more Commentary by Stuart FowlerConsumer complaints about investments have nearly doubled in the past year, according to the Financial Ombudsman Service’s annual review. Overall investment and pension complaints (now including mortgage endowment cases) jumped to 22,265 from 12,787 in 2007/08. Commenting on the report, Citywire’s ‘New Model Adviser’ forum singled out that ‘while the ombudsman recognised under performance of investments was a factor in some of these complaints, it said poor stock market conditions had exposed poor advice. In particular it identified a trend in complaints where financial advisers had not sufficiently considered clients’ tolerance to risk.’
read more Commentary by Stuart FowlerLast week’s Panorama programme maintains a good tradition over the last 8 years or so of Panorama reporting on Britain’s problems with an over-efficient debt sales machine. But the programme pointed up only frustration with the industry and no insights by the people affected that they have often been their own worst enemy. This has to end if we are to enjoy sustainable financial wellbeing in our households.
read more Commentary by Stuart FowlerThe severity of the recession is making people wonder how safe their pension is if their sponsor could go bust or cannot fund contributions. The feedback loop between pension solvency and corporate solvency, where the chance of failure is magnified by rules written to protect them from failure, is particularly unfortunate. It makes this look like another systematic problem that only the Government has deep enough pockets to solve.
read more Commentary by Stuart FowlerMonkeys do what monkeys do. Remember that when bankers get your goat. Call it cynicism or call it just realism but the purpose of this website is to encourage customers of the financial services industry to be less trusting and regulators to be smarter about how they control the industry. Of all the financial services this blog comments on, commercial banking is the one that least needs people and which is most harmed by people. It needs clever people least of all. This insight is critical to understanding how commercial bankers managed to lose essentially their entire equity capital base and why taxpayers are being called upon to recapitalise much of the banking system, here and in many other countries.
read more Commentary by Stuart FowlerNews Categories:
Popular Tags:
Last 12 months:
» About our insights
» About our commentary
» About our research
