Time for a change of direction

I have finally concluded that the FCA is a busted flush as far as the financial advice market is concerned. It’s not surprising. How can one organisation be capable of regulating global FTSE 100 institutions alongside thousands of small owner managed businesses? It’s impossible; as some recent announcements prove.

Look at the “Customer Duty” initiative: “Put yourself in the shoes of your customers. Ask yourself if you would like to be treated like this. Would you recommend your products and services to friend and family?” Etc, Etc. Does anything  in “Customer Duty” regulation add to “Treating Customers Fairly” regulation’?  Strikes me this is just hot air. Surely the FCA should be focussing on the issues that would make a real difference to consumer outcomes. For example, people who create products such as short-term bonds and cyber currencies and sell them to gullible or greedy consumers.

The FCA seems to be asleep at the wheel most of the time. For example, anyone with any experience or insight in the market should have recognised the risks inherent in DB to DC transfers where advisers only got paid if a transfer took place. A clear recipe for a scandal which will haunt the profession for years and cost a fortune.

But what really annoys me is that over the last 5 years, £125 millions in bonuses have been paid to staff in such a dysfunctional organisation.  Perhaps executives should be putting themselves in the shoes of customers.