My attention was caught recently by articles in the press about phoenix firms rising from the ashes, after people lost considerable funds following the advice of the adviser, who subsequently puts the firm into liquidation, then starts up a new company.
While this practice is legal, it should not be allowed for a poor financial adviser to be let loose on unsuspecting people again.
As I write, the FCA has just published a discussion paper entitled Transforming Culture in Financial Services, in which it claims that culture is the root cause of major conduct failings that have occurred in recent years.
Regulation is one of the main themes, but the FCA states that it is only one piece of the jigsaw and that its role may be limited.
Since, the FCA authorises advisers, it may be that this is the area that needs more scrutiny. One bad apple does not a whole tree make, but in financial services this seems to be the case, as we all generally get tarred with the same brush.
Preventing bad advisers from getting authorisation in the first place, has to be the starting point, and if a business becomes insolvent due to its own bad practices then the person(s) concerned should be prevented from advising or even running a financial services business, at least until they can prove they are capable and qualified to perform these roles.
There are hundreds of good advisers and planners in the UK who act professionally, ethically and with integrity and have their clients’ interests at heart. Why then, should their efforts be marred by the scandals of a few?
Ever since I joined financial services back in 1989, there has been one horror story after another, and I am sure those who are determined to be rogues will be so, but there are many more who do promote a healthy and honest culture.
On its own, improving culture is not enough, as some attitudes will not change, regardless of suggestions or behaviours. Greater qualifications and improved vetting processes and standards would be a step towards the professionalism we need.
Marlene Outrim is managing director of Uniq Family Wealth
