Sunday, 25 March 2012

'The struggle to find FSCS funding solution...'

'...This really is a shocking state of affairs and it beggars belief that no one seems to have a solution to the problem. Only the other day, Treasury financial secretary Mark Hoban effectively told a meeting of the Commons public bill committee that some of the best financial minds in the UK – by that, I mean regulatory “minds”, so maybe not the best after all – had been unable to devise a solution.

Hoban told MPs: “I have thought about it and failed, the FSA is struggling with it, as are industry groups because they recognise the burden has to be shared. The challenge has been that it is difficult to predict the calls on the scheme because they depend on how many firms go bust and what liabilities a firm has.”

That may be the case, but what Hoban does not appear to have commented on is the fact that many of the problems faced by IFAs relate to firms whose activities went far beyond their original classification by the FSA and were never properly regulated even after they were placed in the investment intermediation sub-class. Ultimately, IFAs are paying for the fact that the regulator did not do its job properly....'

Posted via email from Gibraltar

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