Comments on: FSA plonkers drop another clanger.

By: Mortgage broker

Mortgage broker — Fri, 16 May 2008 12:24:13 +0000

As always the FSA have no ideabout whats happening on the street.

By: Trumpo

Trumpo — Tue, 18 Mar 2008 07:06:51 +0000

Roger, a little humour always eases the pain, unfortunately due to raising fuel bills, the lights are being swtiched off by the Govt right now!

By: Roger

Roger — Mon, 17 Mar 2008 17:01:05 +0000

I SO remember attending one of the first FSA awareness conferences in the City of London which was also attended by the GISC way back in 2003. The lady Chairperson confidently informed us that the proposed FSA would formulate their future Regulations from a blank peice of paper with no assistance from either the GISC nor Insurance companies. She pranced about the stage slapping a blank sheet. (I wonder if any one else attended on “Trumpo”?)

Being asked how on earth this would be practical or even prudent, her reply was heavy handed on the basis of “it will be done”

I had the misfortune to sit with her a lunch and on asking her opinion on “overdrafts” since there had been mention earlier, I was informed, that if a General Broker runs an overdraft he / she will not be in a position to look after the client base properly! It did not interest her to be given examples of general business practice.

My pointing out that my company does not hold client money in any shape or form and that an overdraft was entirely my own affair, should I want one, received her curt reply “beware then”!!!

Of course, all the “experts” were, in fact consulted, but at the time, we left the building feeling that the “End was Nigh”.

With all the “consultation” that did ensure, it is quite obvious that the FSA was unable to grasp then and to date still hasn’t, that their onerous and in the main unecessary Regulations have driven thousands of highly competent small firms out of business thereby depriving truely independent advice to the general public.

AS said, since my company does not collect client funds, why the need for twice yearly reporting of accounts including Balance Sheets when only Incorportaed companies are required to do so and only once a year, at that!

Cameron is said to want to reform this all powerful quango but I suspect his time will be taken up with similar vastly important legislation such as “plasic bags” should he ever become prime Minister.

In Wilson’s time, the saying was:

“will the last businessman leaving Britain please turn out the lights”

A joke then but getting too near the mark now for my liking

By: Jim Payne

Jim Payne — Fri, 07 Mar 2008 11:42:39 +0000

Going back to basics I was under the impression that the FSA was set up as an industry ‘Regulator’ not as a ‘Consumer Advice’ body.
Having messed up big time, with Equitable Life and Northern Rock just being the most obvious tips of the iceberg, they are now rushing around like headless chickens trying to find something to take the spotlight off their incompetence. Spending our money to do it! As someone has already said, what other industry is required to fund FREE advice to the consumer along the lines of ‘use all possible avenues elsewhere’ before, as a last resort, suggesting they go to an IFA. Not even a mention of the focused professional the ‘Mortgage Broker’.
I believe that this is actually a long term ‘job retention exercise’, trying to justify their current existence whilst expanding their remit. This is a basic bureaucratic tactic, because these people are paid their comfortable salaries and ‘Final Salary’ pensions, out of our fees, on the basis of how many people report to them. I would have said on how many people they ‘manage’ but that would have been a misuse of the word.
Moving on am I correct in my recollection that a House of Commons select committee recently dubbed the FSA as ‘Unfit For Purpose’? That seems spot on to me! But what is being done about it?
However looking at the bigger picture, what is most worrying is that it is painfully apparent that the FSA does not understand the workings of most of the sectors of the Finance Industry that they were set up to regulate. They certainly do not understand that most areas of Finance depend very heavily on the public having trust and confidence in the people and institutions with which they conduct their financial affairs. They also do not understand that Financial Institutions need to have the trust of their peers. Without this confidence business becomes almost impossible and we have an overnight freeze of the Inter-Bank lending market.
The FSA needs to be totally revamped. Ditch the Politically Correct attitude of trying to play to the public gallery and get on with the BASICS of regulation. This will, of necessity, require that the civil service ‘jobsworths’ will need to go and a few knowledgeable industry professionals be brought in. Most of the admin. and reporting could be drastically reduced and the expensive offices in Canary Wharf dumped. Oopps!! That would mean that the FSA would loose face, stature and credibility with the Finance Industry. Something that would suddenly become relevant to itself, if not to the industry it regulates!

I’m really pleased to add my thoughts to those of you who have already posted comments above and feel less lonely realising that I’m not the only one to have such views of the shambles that is the FSA.

By: Money Mentor

Money Mentor — Thu, 06 Mar 2008 10:49:03 +0000

Those of you who are keeping track on this one - may be interested that Mortgage Next are backing the FSA campaign and encouraging us all to follow suit. WHAT A CHEEK

Read this and then follow my reply which I emailed as per the instructions. If you feel similarly inclined - then direct your emails towards Mortgage Next

Mortgage Next backs FSA campaign

Mortgage Next has encouraged brokers to back the FSA’s campaign to increase consumer awareness about the range of financial options available to them.

The FSA this week launched a £2m advertising campaign to improve consumer awareness of product options.
Gemma Harle, managing director at Mortgage Next, said: “Brokers should consider how they can best keep their clients informed about the range of options available to them, which should not only include mortgage products but also additional services such as debt management support.”

If you have any comments you would like to add to this story or would like to speak to Mortgage Solutions about a similar subject, telephone Ben Marquand, on 020 7484 9981 or email ben.marquand@incisivemedia.com

MY REPLY
Not only do I find it bizarre that Mortgage Next is giving public backing to this initiative, but the fact that they are asking Mortgage Brokers for support is outrageous.
What on earth is Mortgage Next thinking about? Has Gemma Harle, actually given any consideration to this at all? No doubt she finds it very Politically Correct to give unconditional support to the FSA, but has clearly not considered how this impacts on Mortgage Broker Firms [remember them? The very people who supply her with her business?]

As a Broker I found out that on - Tuesday 4th March - The FSA announced that they are to spend £2 Million, [funded by Mortgage Advisers annual regulatory fees] to market the FSA’s moneymadeclear website to help and guide clients who are about to come out of a fixed rate mortgage. Their requirement for doing this followed ‘extensive market research’ [which was incidentally based on a poll of 573 people] and from this time wasting exercise have said that if consumers find the website unhelpful they should go and speak with a lender.

Within an hour of this going public a spokesman for the FSA went live on BBC News 24 to say that if all else fails then go to an IFA! This is an issue about Mortgage Advice not Regulated Investment Advice - Does the FSA not know the difference? The FSA have clearly lost the plot. Official government backed advice to consumers to by-pass the Intermediary Broker Market gives a strong signal that the FSA has no faith in independent mortgage advisers. They might get better value for their £2m by spending it on rooting out more of those brokerages who are employing nefarious practises, cheating the public and undermining consumer confidence.

It seems to me that the FSA are wasting our money and do not really understand our market. I should like to remind Ms Harle, that there is a highly professional, stringently regulated adviser community in this country, who work diligently and fairly to serve the property funding consumer market.

I should like to thank Ms Harle for he matronly arrogance but would also wish to point out that Brokers are well able to consider how they can best keep their clients informed about the range of options available to them, including mortgage products and additional services such as debt management support, without any direction from her.

It is a terrible shame that Mortgage Next so clearly misunderstand their ’suppliers’ and even worse that the FSA do not seem to understand the industry that they are regulating. But the most bitter pill to swallow is that the FSA is actively working as a competitor to Independent Broker firms who it seems to neither trust nor is prepared to support.

Mortgage Next have put a Face on this - so if you feel strongly enough about this, then follow up the link given by Mortgage Solutions and responded in your thousands.