Opinion  

I’ve made a stand against the 'illegitimate’ FSCS

In relation to the funding of the FSCS, do I send them a cheque for FCA, Fos and Mas fees and refuse to pay the FSCS fees?

It is probably easier for one IFA firm with such a modest turnover to make a stand than a larger firm with several advisers, some of whom cannot afford to risk being suspended from trading.

This was what I sent to the FCA yesterday: “I have offered full payment of your fees and those of Mas and Fos.

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“I dispute the legitimacy of the FSCS system as do the vast majority of advisers, I believe, and we are being dictated to and having decisions foisted upon us by quangos with placemen from the Treasury who are taking with both hands.

“Kindly confirm you are refusing to accept the full payment of FCA, Fos and Mas fees?

“By refusing to accept them, please confirm at what date you will deem me to be in default of my obligations and attempt to remove my right to continue my trade as a financial adviser, that is, attempt to remove my authorisation?”

The Treasury has been trousering industry fines for non-financial services industry-related purposes, and as it is pretty much accepted now that the FSCS system is critically flawed, I am of the opinion the Treasury should be redirecting the fines to offset the FSCS fee increases caused by unregulated investments held in Sipps. This is a problem of the government’s making.

Phil Castle

IFA, money coach and facilitator,

Financial Escape,

Ramsgate,

Kent