Financial interest in leaving the EU

So I thought I might as well throw in my two pence worth while trying to focus on the financial aspects.

Comments on notice boards suggest that financial advisers would probably vote to leave the EU by a reasonably large majority. Whether those comments are based on your own political leanings, or on the best interests of your clients is a questionable point, although I have no doubt red tape – much of it imposed by the EU – has an effect on your feelings.

I suspect that finding facts as opposed to politically weighted comment over the coming months will be a desperately difficult task.

When I returned from holiday last week, I was bludgeoned with a story warning of impending doom if the UK chose to leave the EU.

I was bludgeoned with a story warning of impending doom if the UK chose to leave the EU

Sterling had hit a seven-year low and, warned a shrill BBC report, more than a third of bosses at the UK’s biggest firms had signed a letter supporting continued EU membership. Little significance was given to the fact that 64 bosses did not sign.

The doom-laden BBC coverage also failed to mention that the FTSE 100 had risen by 1.47 per cent on the same day. That would imply that some investors would appear to feel there is a future outside the EU for the world’s fifth biggest economy.

The EU is a camel of an institution whose wastage is perhaps best summed up by the ludicrous shifting of its parliamentary seat between Strasbourg and Brussels once a month purely to keep the French happy.

Therefore plastic trunks are loaded on to trucks and driven almost 300 miles at an annual cost that has been estimated by the Conservative Party in Europe to be more than £130m.

The cynic in me wonders why those business leaders who are so in love with Europe do not take some positive action to persuade voters that it is also in their interest to remain. Perhaps instead of warning of lost jobs, they might offer better training opportunities to British school-leavers.

Woodford Investment Management’s report on the potential effects of a Brexit concluded that the long-term impact is likely to be minimal.

For investors, it looks like the coming months – and possibly years – could be dictated increasingly by sentiment. Those who try to guess the market could come a cropper.

I suspect we have entered what the Chinese proverb terms: “Interesting times.” And in case you have not already guessed, given the choice I would leap for the exit door tomorrow.

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Sit up and take notice of FAMR

It seems that it is a lot easier to complain over a glass of Merlot than to put pen to paper and construct a coherent argument.

This is one conclusion of the poor numbers who responded to the Financial Advice Market Review.

As Financial Adviser reported, just 68 financial advisers responded to this review – a disappointingly low number.

The objectives of the review include: how to give firms regulatory clarity and create the right environment for them to innovate and grow; and how to encourage a healthy demand side for financial advice, including addressing barriers that put consumers off seeking financial advice.

Does this not interest or concern you at all?

I have no doubt that I will receive emails and press releases over the coming months pointing out that financial adviser numbers are dwindling or that it is getting harder to run a business.

Yet, when a rare opportunity to contribute constructively to the debate comes up, it seems it is all far too much effort.

I wonder if only 68 will complain or comment when conclusions are published and decisions are made.

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Mind the lending ageism gap

Into my inbox pop two emails. The first from the FCA encouraging firms to do more to support an aging population.

The second, from a 74-year-old whose mortgage lender is refusing to sanction allowing them to borrow beyond age 75, despite them having an income of close to £70,000 supplied mainly by an index-linked final salary pension and a perfect payment record.

I am not going to plunge into the full details, but suffice to say they have a very large equity stake and are comfortably off.

While the mortgage extension is not essential, it would be helpful. All they are asking for is to be given equal treatment with younger buyers who, in similar circumstances, would no doubt be offered the money once the appropriate boxes had been ticked.

Perhaps the bank in question has yet to read the FCA discussion paper. I think I will forward it to them.

Tony Hazell writes for the Daily Mail’s Money Mail section