I am told the keydata FSCS bill is all about the definitions of the different pools – clear for life and pensions which divides neatly into provider and intermediary but not for investment. Actually it is clear, in the investment category if you aren’t a fund manager you are a distributor. This is of course nonsense. This is bad drafting in the first instance and bad regulation in the second in that the market and roles continually shift. Surely just as relevant a categorisation would be if you are not advising you are arguably a provider.
If this madness continues with more financial burden heaped on advisers than the £70m because of what is in essense poor regulation and a lack of understanding of the market then there needs to be an investigation with outside input. (The FSA is always supposedly doing this for the consumer benefit, RDR and all.) But for the sake of maintaining any confidence among the regulated this needs addressed as a matter of urgency.
It also raises the question of just what exactly the industry can do to make sure the regulator is actually doing its job properly something a toothless and almost pointless practitioner panel cannot provide. We need something much better to watch the watchman.
Surely, most even-thinking humans would agree that a product levy is the only reasonable way of meeting the cost – assumed and real – of the ‘dead’ financial services firms.
It should not represent a tax on advisers, a kind of Danegeld for the modern ages.
Common sense departed as regulation took hold. Iain Cowie’s oft-told tales about “other people’s money” have never resonated so strongly.
Keydata clearly operated essentially as a Provider. Those at the responsible FSA know this. They either need to decide to levy providers or explain how and why they allowed an Advisory firm to operate as a provider and to generate such liabilities.
No matter what the outcome I have had enough and will not remain much longer to pay for the sins of others. I do not imagine I will be alone in leaving. For those who remain – you are welcome to this brave new world – I no longer wish to be regulated by those for whom I have no respect or trust. Congratulations FSA – job well done.