FCA director Debbie Gupta has said the regulator has room to improve but it cannot be held responsible for the increases in Financial Services Compensation Scheme levies and professional indemnity costs felt by advisers. However, it believe the situation with the scheme paying out £1bn this year is unsustainable.
This quote is also interesting – “Stemming the flow of poor advice is absolutely key. Tension exists between what is desirable and achievable; between what is practicable and what is fair. Being blamed for higher PI premiums is like being blamed for higher car insurance premiums due to cars being stolen.”
It does look like significant change is afoot. But will it be in a direction that advisers welcome?
The round of takeovers of IFA firms continues apace.
London-based consolidator MWA Financial headed by former M&G equity boss Ed Rosengarten has acquired its second advice firm Prosperity Financial Advisors & Stockbrokers.
This, however, is a slightly different deal. Richard Skerritt founder of Skerritt Consultants has announced that his firm had been taken over by private equity house Sovereign Capital Partners.
Skerritt has hired someone he describes as the ‘Alex Ferguson of the IFA sector’ as ex-Towry CEO Andrew Fisher joins his firm.
It has to be said that Mr Fisher like Sir Alex does not suffer fools gladly.
Dunstan Thomas’s Adrian Boulding suggests that the fall in GDP in January means that IFAs should brace themselves for negative rates.
If the habits of the pandemic take significant hold in the economy in the years to come, it could significantly boost UK GDP growth, according to George Lagarias, chief economist at Mazars. In a contrary view, he suggests that economic growth could spread out from London to other cities. However there will be pain on the way.
Professional Adviser does a brand review of Phoenix and Standard life and rather nails the challenge.
To quote “By agreeing to sell the historic Standard Life brand to the insurer, the door is now open to a potentially dramatic shift towards a new business product range and an overarching stated ambition to become a "market leader.
"But this will require a different, much more outward looking culture within Phoenix, which will test the business in complex ways."