Opinion  

Letters: PI issue is 'critical' to DA companies with longevity

Financial Adviser Letters

Financial Adviser Letters

This week...

Forced out of the industry

Regarding your article ‘PFS issues FSCS levy call to action’ (Jul 28).

After working as a financial adviser for the past 30 years, the constant hike on FCA fees is driving me out of the industry – to the point that, at 53-years-old I am looking at leaving the industry as a whole. 

It is my clients I worry for. Soon there will be no advice. And watch what happens then with scams; just the faceless rogues roaming around our clients. It is such a sad time.

Name and address supplied

 

Care homes

Following your article ‘Over-40s face extra tax in bid to fix care crisis’ (Jul 27). 

Care for the elderly needs addressing in the same manner as when the NHS was set up.

Too much reliance is placed on private care homes, who do their best but have to cope with regulations as well as remaining profitable.

In my opinion, a national care system could provide uniformity of training and quality of services. 

The costs could be controlled if the management is obliged to work to a strict but reviewable budget and is not permitted to influence their own pay or benefits. 

Everybody is a potential user of the ‘care for the elderly’ system and so we should all be contributing during our working life, possibly by paying a little extra income tax and capital gains tax (but not on the sale of your principal private residence).

During this pandemic the government has shown it can find money when it wants to, so I’m sure they could find a £1bn to kick start the funding.

Private care homes should still be available for those who want choice and can afford it, but people should not be forced to go private just because they have assets. 

Clive Fox

Retired IFA

 

FCA needs to step in

Regarding your article ‘Keep FCA fees fair: our campaign launch’ (Jul 24).

The issue with professional indemnity insurance is critical to directly authorised companies who have longevity.

We are a small network with 200 advisers. We have 16 years behind us and we have never had a PII claim paid.

We have seen our PII go from £67,000 to £187,000 in one year. Only one insurer would look at us and terms were agreed with literally hours to go. Having spent the prior four months liaising with the broker – we had no choice – it was pay or close. 

This situation is not conducive to the running of a successful business or long-term business planning. 

We are a profitable whole-of-market mortgage and protection and IFA network. 

We have never borrowed and we have built the business over many years organically as a true family business. 

We call the regulator to step in and manage this situation.