Opinion  

The FSCS is deluding itself

I am writing in response to the news that Intrinsic is raising its fees due to the FSCS levy. The FSCS says it provides consumer confidence. Does it actually believe this? They must be among the very few who do.

I have met the fifth couple in my career who have had dealings with some dodgy advisers in the past and been compensated by the FSCS. They have all said that they would never invest again due to feeling duped in the first instance, been made to look foolish, and on top of that having had to fight tooth and nail to get the compensation.

None of them have the confidence to use an adviser again other than for mortgage (and protection, which is what I did for them). So for the FSCS to say they provide consumer confidence is at best disingenuous and at worst rubbish.

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Do they honestly believe that they being there provides confidence for consumers? People take advice and act on it from people they trust, no other reason, and sometimes that trust is misplaced due to the dodgy dealings of a very small minority. Most investors forget they have ever heard of the FSCS from the adviser and so it makes absolutely no difference to their confidence to do business with the adviser or not.

The sooner the F Pack (FSCS, the FCA and Fos) come to terms with this the better for everyone concerned, especially the people who pay our fees.

Martyn Young

Principal

M Young Associates

Belfast