In response to the FCA’s Financial Advice Market Review (FA, 17 March), in my opinion, you have to run your own business in financial services to understand the risks.
Tracey McDermott, FCA acting chief executive, does not understand the absence of a long-stop because she is an employee, and when she retires or leaves she is not going to be held account for her actions or comments now in 20 years’ time. Even run-off professional indemnity(PI) is not perfect. That is not the same for small companies in financial services.
I often hear the claim that due to the long-term nature of investment and pension plans that there has to be protection in place. My son works in nuclear design. The contracts run for nearly 50 years. His PI does not chase him into retirement. In fact, I cannot find any other profession that suffers this miscarriage of justice.
I agree that there are no logical reasons for the lack of a long-stop. What we do lack is new blood coming into the industry, strong innovation and leadership. In all a perfect cocktail of decline for the personal advice industry for the masses.
Greg Heath
Managing director,
Derbyshire Booth Financial Management,
Leyland,
Lancashire
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