A lively if unlikely spat has broken out between the FCA and the Work and Pensions select committee. The committee and the chairman Frank Field has made some very stark criticisms of the FCA and its actions over the British Steel Pension Scheme. There is a long list of correspondence from various parties on the committee website including from one of the advice firms and the introducer embroiled in the issue.
The FCA’s chief executive Andrew Bailey has wholly rejected the committee’s warning that the FCA risks sleepwalking into the next misselling scandal. Megan Butler, the head of supervision has also published a long letter answering the committee’s challenging questions. More to come on this no doubt.
I rate Graham Bentley as a commentator. He challenges the industry for the assumptions it is making about retirees, including the views of star financial planners and academics borrowing heavily from US sources. He has much to say about the BIFs – born in the 50s generation. Worth a read.
Barclays pension scheme members have taken the bank to court as FTAdviser.com reports. The issue involves plans to back the main bank scheme with the ring-fenced investment bank not the domestic bank from the mid 2020s. The issue was brilliant summed up by the Times’ Patrick Hosking.
The FSCS is to levy £87m on the life and pensions class more than the £75m expected (for nine months due to a change in its financial year) following complaints about SIPP investments arranged for DB transferees. This should really ring alarm bells among advisers if they are not ringing already.
Advisers at the New Model Adviser conference now see robo-advice as the biggest threat – a considerable change over the last 12 months.
The conference was also served a warning about the global $22 trillion ‘sub-prime carbon bubble’ and may be prompted to rethink their exposure.
Nationwide Building Society is to hire 250 Carillion employees – the in-sourcing begins!
The High Court has prevented the BT Pension scheme from switching its pension payments from RPI to CPI. The scheme has big liabilities but this is one less reason to transfer.
Millions of Chinese investors may have lost everything in a huge Ponzi scheme According to Zero Hedge it could involve 200 million investors and 7 billion yuan.
The Chinese may still be on a steep learning curve about the hazards of capitalism.