There is a growing stand-off between the Government and the Bank of England concerning plans to deregulate the financial sector.
Interestingly, it suggests supporters of deregulation include the former Chancellor who is bidding to be PM, the current chancellor and the current Prime Minister.
Former chancellor Rishi Sunak is set to publish his so-called ‘Big Bang 2.0' on Wednesday, which would see ministers given the power to challenge regulatory decisions made by the central bank.
This is supported by current chancellor Nadhim Zahawi, while outgoing prime minister Boris Johnson is reportedly losing patience with the bank's resistance to the proposed Solvency II regime.
Interesting to see financial regulation caught up in arguments over the Conservative leadership but some IFAs may worry especially if banks are given significantly more freedom.
The Solvency II reform is also strongly resisted by many figures in the Bank of England including the Prudential Regulatory Authority, which is not a fan of changes to the sorts of capital insurers can hold.
Nick Train has expressed his surprise at the worst performing shares in the Lindsell Train UK Equity Fund
In a note to investors released this week, Train said: “I rub my eyes in disbelief at the prices of our worst performing shares in 2022 and am sorry for the reduction in the value of investors’ savings that has resulted.”
He said these price falls would be temporary, and the performance of the “offending companies” would prove the pessimists wrong.
Pensions minister Guy Opperman has announced a new taskforce to help pension trustees monitor data and international reporting developments as they relate to the rather tricky ‘S’ in environmental, social and governance considerations.
FCA CEO Nikhil Rathi has said the incoming consumer duty will “break new ground” in regulating the retail financial markets.
The aim is to crack down on firms presenting information in a way that exploits consumers’ behavioural biases, selling products or services that are not fit for purpose, and providing poor customer support.
Some advisers remain cynical and see it at best as an update on Treating Customers Fairly.
Rikki Nicholls and Mark Kelly have been sentenced to six years each in prison for running an unregulated pension business that defrauded more than 250 clients of around £22m as Citywire reports