Closer to home, MPs also called for the Financial Conduct Authority’s chief to resign and pension reforms hit the headlines. It’s time for the week in news.
1 Chief in hot water
More than a dozen MPs called for Andrew Bailey to resign from his position as chief executive of the FCA for his part in "presiding over the biggest financial scandal in recent years".
The calls were made in relation to the collapse of mini-bond holder London Capital & Finance, which went into administration in January owing more than £230m and putting the funds of some 14,000 bondholders at risk.
The firm was authorised to promote the mini-bonds which MPs claim enabled the company to "raise money from bondholders”.
An early day motion calling for Mr Bailey's resignation over the issue has now been signed by 16 MPs, expressing "alarm" over concerns the regulator did not act quickly enough to identify and act upon problems in the firm.
2 Blast from the past
Advice company Insight Financial Associates was ordered to pay compensation to an insistent client for transferring her pension benefits to a self invested personal pension.
The Financial Ombudsman Service found the adviser should have properly protected the client from the investment, which was too high risk for her.
This was after it heard that the client had been told by Harlequin the suitability reports were 'standard practice' and were to be ignored.
Insight argued that no advice had been given to the client to invest in Harlequin and a letter signed by the client in January 2011 set out the adviser’s recommendation not to proceed with the transfer.
However, the Fos said that Insight should have declined to arrange the Sipp transfer regardless.
3 A Waspi win
A United Nations independent expert said changes to pension policy which penalised women born in the 1950s should be rectified to remedy the "systematic disadvantage" they created.
In his final report of his visit to the UK, the UN special rapporteur on extreme poverty and human rights, Philip Alston, said the government should "review and remedy the systematic disadvantage inflicted by current policies" on women, as well as on children, persons with disabilities, older persons and ethnic minorities.
This followed his initial statement in November when he noted that women born in the 1950s had been particularly impacted by a "poorly phased in" change of the state pension age.
Mr Alston noted that the policy change had "severely and unconscionably penalised those who were on the cusp of retirement and who had well-founded expectations of entering the next phase of their lives".
Campbell Robb, chief executive at the Joseph Rowntree Foundation, said there could be no moral justification for failing to act on the report.
4 Double trouble
A total of four platforms in the UK profit twice from clients' cash holdings, FTAdviser revealed this week.
Data compiled by consultancy firm the Lang Cat showed Parmenion, James Hay, Novia and AJ Bell all have a policy of not passing on any interest received on client cash to the end client, as well as of charging clients to hold cash.
The issue concerns interest accrued on money held in bank accounts from dividend proceeds or savings used to make regular investments.
Back in February several experts called on the regulator to impose and enforce stricter disclosure requirements on platforms, saying they were concerned clients did not know how much of their accrued interest was being kept from them.
5 Under the microscope
The FCA is currently investigating 30 unnamed individuals and firms for poor pension transfer advice and scams, according to Labour MP Nick Smith.
The information was revealed by economic secretary to the Treasury John Glen, who responded to a letter from the Blaenau Gwent MP, who asked for information on what action the regulator has taken against rogue advisers.
Mr Glen also revealed that enforcement action has been taken against 15 businesses and individuals for "pensions misconduct" by the FCA in the last five years.
Mr Smith, who has asked the government to come up with new criminal charges for rogue advisers in the wake of the British Steel debacle, said the response from Treasury raised more questions than answers, and called for tougher action from the watchdog.
The news comes after the regulator announced last year it was conducting a whole of market review of advice given by pension transfer specialists after it found in previous checks that roughly half the advice given had not been suitable.
imogen.tew@ft.com
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