Perils of the bandwagon

The fact is that when it comes to protecting private investors the FSA to some degree but particularly its predecessors have done a lousy job.

They consistently failed to spot mis-selling until it was too late, failed to understand products that could lead to consumer detriment and have, crucially, been far too easily swayed by powerful industry lobbies.

So lets pay them all compensation from taxpayers money. Then we can all pay higher taxes to fund it and the only people who will be better off are those who are paid to administer the operation.

Blue sky Isas

I am guessing that most of your clients have the odd cash Isa. With more than £150bn invested these are far more popular than share Isas. In fact they are the most popular tax-free form of saving.

Someone who has invested since launch could now have more than £50,000 invested including interest – a not insignificant sum.

Yet investors who want to move their cash are caught up in an archaic paper system where documents frequently go walkabout.

On this occasion it is not just sloppy administration of banks and building societies to blame. The Treasury, with its manic attempts to make sure not a single penny of potential income goes astray, must share the blame.

It is responsible for insisting that cash Isas are treated as investments which, banks say, means they must observe a 14-day cooling off period on transfers.

Then the receiving bank has a full 30 days to set up the Isa once it has received the cheque. How ludicrous.

This system must be brought into the 21st century and that means electronic transmission of transfers. It’s your clients who are being affected, so it’s time you joined those who are kicking up a fuss.

Future prospects

A third of 230 financial advisers questioned by Fidelity Funds Network admitted only using investment bonds for almost all their clients’ investment needs until the recent tax changes.

Who are these people? Have they been to school or just through an insurance company selling course? A third of these 230 advisers say they have no intention of reviewing their clients’ portfolios following the changes and 26 per cent are uncertain.

By my calculations that makes at least 76 financial advisers who should not be practising and a further 60 who should be considering their future.

Contact Tony Hazell on: t.hazell@gmail.com