Hoban backs RDR move to fees - IFAonline
I can see where he is coming from.
But can he see where he is going to?
Yes there are problems with commission, there are also problems with fees, even if the advice was free there would be issues.
The RDR misses the target and the man with the crossbow is using a blindfold.
Top down regulation has failed, is failing and will forever fail.
Until what the consumer needs is the driving force behind regulation the efforts of Mr Hoban and his successors are doomed to failure, unfortunately it is society which pays the price for the failure of their elected representatives.
Showing posts with label financial ombudsman service. Show all posts
Showing posts with label financial ombudsman service. Show all posts
Thursday, October 14, 2010
Saturday, October 2, 2010
More than 7,000 complaints lodged against banks every day - Telegraph
More than 7,000 complaints lodged against banks every day - Telegraph
Once upon a time a banker told me they built in "complaints shrinkage" of more than 5% of all new business, a bit like shops and shoplifting but more perverse, yes it is par for the course but the fact is that 90% of those who might have a valid complaint are too afraid to risk losing their 'facility'. As one recent complainant to saverjustice said: "the man at the call centre asked me if I wanted to make the complaint 'formal' and if i did it woudl be best to find another bank who would take me in, he suggested the Co-Op". let's look at this carefully, the FSA rules say that a complaint is an expression of disatisfaction whether made orally or in writing, the bank rep wanted the complainant to make it "formal" which means the banks own "rules" do not comply with the regulations. When I met the FSA I asked how many FSA staff supervise the banks the lady said "we have sixteen people supervising Barclays and they only look at the prudential requirements". I was stunned, still am, how on earth can the FSA ensure that the sales processes and complaints handling of the banks is up to its standards (whatever they are on a given day) when they only have sixteen people supervising a bank with more than 50,000 employees all on targets and bonuses?
To me the FSA loks like the local police force, they use up all their resorces on paperwork and easy targets, in the FSA's case it is the small IFA firms who as it happens 'generate' a tiny fraction of teh complaints.
Regulation is bust, society is in dire need of regulatory balance, I see less each day.
By the way, I am a regulatory consultant with almost three decades of experience in bad regulation created by bad government policy, blame the people you vote for and the 'architects' they employ who created every duff regulator to date and will create the next one.. oh and the same regulators (people) who have been around as long as I have.
Once upon a time a banker told me they built in "complaints shrinkage" of more than 5% of all new business, a bit like shops and shoplifting but more perverse, yes it is par for the course but the fact is that 90% of those who might have a valid complaint are too afraid to risk losing their 'facility'. As one recent complainant to saverjustice said: "the man at the call centre asked me if I wanted to make the complaint 'formal' and if i did it woudl be best to find another bank who would take me in, he suggested the Co-Op". let's look at this carefully, the FSA rules say that a complaint is an expression of disatisfaction whether made orally or in writing, the bank rep wanted the complainant to make it "formal" which means the banks own "rules" do not comply with the regulations. When I met the FSA I asked how many FSA staff supervise the banks the lady said "we have sixteen people supervising Barclays and they only look at the prudential requirements". I was stunned, still am, how on earth can the FSA ensure that the sales processes and complaints handling of the banks is up to its standards (whatever they are on a given day) when they only have sixteen people supervising a bank with more than 50,000 employees all on targets and bonuses?
To me the FSA loks like the local police force, they use up all their resorces on paperwork and easy targets, in the FSA's case it is the small IFA firms who as it happens 'generate' a tiny fraction of teh complaints.
Regulation is bust, society is in dire need of regulatory balance, I see less each day.
By the way, I am a regulatory consultant with almost three decades of experience in bad regulation created by bad government policy, blame the people you vote for and the 'architects' they employ who created every duff regulator to date and will create the next one.. oh and the same regulators (people) who have been around as long as I have.
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