Advisers are deeply unhappy at reports that the FSCS is looking at ways to compensate savers in collapsed London, Capital & Finance mini-bonds as the BBC reported in the middle of last week.
The social media arguments were continuing as I write this review on Sunday. But broadly advisers are understandably resistant to the scheme being used to bail out investors in an unregulated scheme. My view that while superficially this may seem to provide a solution, it is profoundly unfair to regulated business and those who use their services.
There are huge implications for regulated financial advice if this goes ahead. Suggesting that somehow LC&F was making personal recommendations – it wasn’t allowed to – should not make any significant difference to the scheme being liable.
The Money Marketing editor Justin Cash suggests that the RDR has mostly worked but that consumers have no idea about the vertical advice model. They certainly do not.
Portfolio landlords are feeling the pinch due to Buy-to-Let reforms says FTAdviser. Not surprising.
Brewin Dolphin are set to pay £19m for Bath-based IFA Epoch, the firm’s results reveal, as New Model Adviser reports.
Lighthouse shareholders have voted to go ahead with the Quilter deal.
The FCA has banned five directors across three firms for poor pension transfer advice. The compensation paid out to date has reached almost £27m. The last thing advisers need is for LC&F to fall on the scheme and send the bills higher stil.