“There was an over concentration of a single (unregulated) fund which went against the usual principles of diversification,” noted ombudsman Adrian Hudson.
4. Levy blow
An unidentified adviser who demanded the FCA refund an increase in the Financial Services Compensation Scheme levy because they couldn’t afford the charge, had their complaint rejected this week.
Reflecting the feelings of many in the industry, they wrote to the regulator saying the fees and levies allocation system was not fit for purpose and was in need of radical reform.
Complaints commissioner Antony Townsend responded: “In my view, the matters you raised with the FCA - quite legitimately - were really a contribution to the debate on the FCA’s policies, rather than a complaint suitable for the Complaints Scheme, and it might have been better for the FCA to have treated them in that way.”
Another move sure to enrage some IFAs saw the City watchdog confirm it does not support advisers’ claims that networks which chase them for costs incurred in compensating their clients are avoiding a statutory rule.
Advocacy group the IFA Defence Union had accused some networks of trying to escape their responsibilities by using “flawed” contracts to pursue advisers for unsuitable advice they had previously signed off.
However, a person familiar with the FCA’s thinking said it does not back this view, instead prioritising consumer protection over the relationship between principals and appointed representatives.
5. Enough already
With almost a month to go now until Britain votes on its membership of the EU, those on either side of the debate are really firing up the rhetoric.
This week saw SimplyBiz founder Ken Davy put his name alongside more than 300 business men and women calling for Britain to leave, while many in the property market warned uncertainty around the referendum could keep house prices subdued for a few more months.