It makes a pleasant change for our Newsletter not to headline regulatory enforcement issues but to begin with the FSA’s publication on Financial Risk Outlook. This is an 88 page read but one section of just 15 pages towards the end does focus specifically on market risks for retail intermediaries and provides good information.

Second article, page 1 is a speech by Linda Woodall, who is now Head of Savings and Investments at the FSA, and a number of IFAct Consultants heard her speech. For most readers it won’t be fresh news but a repeat of the message that small firms are under intensive and intrusive supervision and no small firm is under the radar. Although it’s informative to read the whole speech, that is the main message.

At the top of page 2, there is an article on PPI and no firm will be surprised that there is a conflict of interest between consumer groups and the industry after the FSA’s publication of revised regulations. If any readers are still selling PPI it’s probably worth a read but we are sure that will only be a minority after all this time.

Hector Sants’ speech at Oxford University, the only article on page 4, is worth a read as this is the first official announcement that the FSA intends intervening in the design of products. John Tiner always claimed that it was inevitable for an innovative market that the Regulator would follow the market. Hector Sants has taken the reverse view and will insist that the FSA is involved “earlier in the development of retail products”. Also in the same speech he mentions the importance of complaint handling and all readers will actually be pleased to learn that there will be a focus on all major banking groups – as will customers.

Please read the Discussion Paper on page 5 or at least the summary, discussing complaint handling. Our experience is that the vast majority of our readers have very, very few complaints coming through the door and when they do, they handle them very badly. Please check your complaints procedure and handle them correctly even though you may be offended to receive a complaint.

If we can be of any further assistance on these or any other regulatory subjects, please remember your helpline 08456 12 12 11 for a without obligation conversation or email admin@ifact.co.uk.

Kind regards

John Derry-Collins
FInst SM AMITD Fcol MInstD MIoD
Director
IFAct Services Ltd
Tel. No. 08456 121 211

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