HSBC mis-selling scandal: Ex-NHFA adviser dismisses bank's claims

And how much were the FSA staff fined ?

Once again another mis-selling scandal and another fine, when will it end? I'll tell you when it will end, when the FSA staff have some financial penalty for failing to do their job and regulate. Failure to regulate the banks only resulted in knighhoods and big pay offs, what incentive is there to do their job? If the staff at the FSA lost money because of their failure to regulate (instead of just getting fat salaries and big pensions) then these sorts of scandals would stop very quickly indeed. The FSA gets all the info it needs via Gabrial to spot these sorts of trends, so how can it have gone on this long ?

Posted by: Anon

HSBC - NHFA Advisers

Isn't it amazing that the press and media are able to seek out ex sales people and get the truth from them whereas the mighty FSA only speak to HSBC's managers and accept their mealy mouthed lies about what they have been up to? Why ? Because the banks run the FSA and they are not going to treat their mates as harshly as they do IFAs.

Posted by: John Smyth

Ageism

It's not the adviser's job to say to a client this is an unsuitable investment for you because you could be dead in three years. I have checked the advice failings and most of the reasons for misselling were not related to the customers' ages - only failing 1. And it's this that has got all the headlines. And it is discrimination, it is ageism! Ageism is institutionally rampant in financial services... In many cases an investment bond is ideally suited to older clients because they can be assigned for IHT purposes, as insurance contracts they are not counted as assets that affect some means tested state benefits, or younger family members may be happy with the fact that they will inherit the bond. And so on. What could happen as a result of this ruling is that even more stringent age restrictions could be applied by product providers! We are moving in the wrong direction. Investment products should be available to all adults regardless of age or state of health! One final point, I find ageism just as disgusting as racism or sexism or any other ism that is employed to deny people their rights!

Posted by: Ken Durkin

Bank Fines

It is interesting to see HSBC caught up in misselling, and I wonder when the FSA are going to catch up with the acitivities of LloydsTSB, Nationwide RBS etc., as they trawl throughtheir client banks abusing their position.

Posted by: Ian Lees

FSA? Monitoring? Don't think so

Don't know why anyone would expect the FSA to pickup dodgy behaviour. We started the business in 1998, got one visit from PIA 6 weeks after starting and never heard from them or the FSA again. Retired from the business last month, sold the client bank having made as much in initial commission as possible over the last 3 years since sterling and AEGOn, amongst others, started giving out 7% on bonds. Was all the advice competent? Possibly - possibly not (and yes I already had the DipPFS). Let the FSCS sort it out because frankly all IFA's are going to be screwed sooner or later by the FSA

Posted by: No Longer an IFA

GLASNOST!

Two things always shine through from the comments on these pages. Firstly Harry Katz must get very bored as he's never off these pages - as enteraining and illuminating as his comments are. (Harry - don't stop). Secondly - the absolute hatred that many practitioners have for the FSA. Things have become so polarised that as an industry we will never move forward. OK so I'm in Compliance (doesn't make me a bad person or an apologist for the FSA) but how are we to know whether the ex-employer or HSBC are right? I would expect (though I have little confidence) that the FSA would have conducted a thorough and painstaking investigation and formulated their action based on "evidence." Even the FSA are unlikely to get everything wrong all the time! Ultimately, let's not forget why they are what they are - they have been able to grow powerful on the back of an industry that has been too slow to learn from its mistakes or to evolve or even present a sensible unified voice of professional challenge or authority. (AIFA? - playground for trainee regulaotrs) We largely have the regulator we deserve - and that truly saddens me. It saddens me more that so many decent and dilligent practitioners haven't got the strength or confidence to voice their opinions.

Posted by: Disgruntled

Truly outrageous

We do indeed have the regulator we deserve and if any one is "screwing us" it is not the FSA or FSCS it is the likes of @ No Longer an IFA. By his own admission he has been screwing the consumer with possibly not competent advice for high commission and has now decided to dump the cost on the rest of us. Let us see now if IFAOnline has any integrity because they will know who this is hiding behind the mask of anonymity and can report the culprit to the FSA. The FSA will have the power to go after this jerks personal assets

Posted by: Nick Bamford

Income Tax Leverage

Anon said "... when will it end? I'll tell you when it will end, when the FSA staff have some financial penalty for failing to do their job and regulate. ... If the staff at the FSA lost money because of their failure to regulate then these sorts of scandals would stop very quickly indeed." Brilliant! When will we have an increase in economic growth? I'll tell you, when the bankers income tax rate is linked to unemployment levels - say 10 * the Percentage rate = 81% top-rate tax. The scandal of near zero growth would soon climb rapidly to re-employ the million extra unemployed caused by the crisis. Our children and grandchildren will then have a chance at a decent job and life. www.bailoutswindle.com

Posted by: Harry Alffa

I Agree with Nick

Hi Nick - I completely agree with your comment but you know as well as I do that if IFAOnline were to publish that posters details the FSA would do NOTHING. Why? because they don't care and theres no incentive for them to care. They look like their doing a good job now because of all the headlines created. But an effective regulator would work alongside advisers to help them to get it right in the first place rather than the confrontational secret police approach of the FSA.

Posted by: Chippy Minton

@ Nick

I think a lot of people share your frustration with people that milk the system and leave it for others to clear up. It happens time and time again and the perpetrators waltz off into the sunset, without a care in the world. On the other hand, if anonymity is removed then I suspect that genuine whistle blowers will be deterred from acting. I am sure that a lot of advisers have important input to these types of discussions, but cannot comment in their own name for fear of sanctions by their own compliance/management. As Chippy says, it would be better if these problems could be rooted out, before they happen.

Posted by: Chris Lean

FSA inaction

@Nick Bamford Totally agree Nick, but it won't happen and as Chippy said, even if they were named its unlikley the FSA would do anything. But I am not sure about your view on the FSA, and us getting the regulator we deserve. Like you, I take full responsibility for the advice I give. Do the FSA take any responsibility for anything they do? Ever? I share your view that the 7% commission takers are probably taking this much as they are thinking of or are actually leaving the industry - but despite the Office of Fair Trading, is it really beyond the abilities of the FSA to stop 7% upfront commission payments? Stop this and insist on less plus trail for servicing and this problem largely solves itself.

Posted by: Stephen Cooper