Recently I put some shelves up for my elderly father and took along two tool boxes.
I used a screwdriver out of one box and a spanner out of the other. My Dad agreed to pay me £50 for my efforts. Twelve months later I am obliged to check the safety (suitability) of the shelves (having previously regularly checked them) and write a report saying the screws are fine without even bothering about the bolts and whether they were secure. Also, Dad, can I have a further £30? Oh, when I did my tax return I had to break the £50 into bits according to the number of screws and bolts I used, since I may get taxed differently on that proportion of work I did turning bolts.
Mifid II is like that and perpetuates the stupidity of the approach taken by the FCA to product regulation.It costs clients’ money that I can quantify, compromises the spirit of the FAMR and seriously conflicts with the FCA Business Plan for this year. When will advice and financial planning be recognised and supported without the ridiculous approach we currently have. If the above analogy makes you laugh, remember the joke is in the FCA.
Sam Caunt
Director
Moerae Life Financial Planning
Northampton
