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Topics: Mark Garnier| Financial Conduct Authority| FSA| RDR| TSC| Hector Sants
An FSA promise to re-visit the absence of a time limit on complaints in financial services "seems to have slipped off the radar", according to MP Mark Garnier, who has pledged to take the regulator to task on the issue.
Garnier was today named as one of the 20 individuals assigned to the Financial Services Bill Committee, which will scrutinise the legislation "line by line". Its first meeting is scheduled for 21 February.
Alongside Harriett Baldwin MP, Garnier was instrumental in airing advisers' concerns about the Retail Distribution Review at a debate in the House of Commons in 2010.
Shortly afterwards, during a Treasury Select Committee (TSC) hearing, FSA chief executive Hector Sants said he would re-visit the issue of the lack of a time bar - or 'long stop' on adviser complaints.
Garnier said the FSA has not, to date, delivered on that promise.
"It's something people are very worried about and, although Hector did say he would look at it, it seems to have slipped off the radar," he said.
"We need to address [this issue] because it does seem unfair that an entire section of society is not afforded that protection."
A long stop on client complaints exists in other fields, including law and accountancy.
Garnier said he would also ensure the committee takes a closer look at powers awarded to the Financial Conduct Authority to publish warning notices issued against regulated businesses, even before final decisions have been reached.
He called for a balance between preventing consumer detriment and protecting business.
"What you don't want to do is have this horrific financial cost to firms as a result of the regulator being a bit cautious about something," he said.
"Also, if too many of these [notices] are published, people will think of it as crying wolf, so there is a requirement to look at it and how it will work in practice."
Chairs: Mr George Howarth and Mr Edward Leigh
Members: Karen Bradley, Lorely Burt, Mark Durkan, Chris Evans, Yvonne Fovargue, Mark Garnier, Stephen Gilbert, Sheila Gilmore, Fabian Hamilton, Matthew Hancock, Greg Hands, Mark Hoban, Cathy Jamieson, Chris Leslie, Alison McGovern, Jesse Norman, David Rutley, Alok Sharma.
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| Comment | MP pledges to re-ignite long stop debate |
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All very commendable but .....
unfortunately as we all know only too well the FSA dont take any notice of MPs or comittees etc and are a law unto themselves - so I am not holding my breath, as usual !!
Posted by: DennisB
Deaf ears
So What? The FSA hate us. They want to see us hounded to the grave. The TSC was powerless before the might of the unaccountable Sants and the grinning nicol. Why should we believe Garnier will have any influence? Rather than continue to give out false hope, Mr Garnier should admit he can shout all he wants but the FSA will not listen. They never do.
Posted by: Not living in a democracy.
long stop
Well done Mark raising this issue again but as he said "it has slipped under the radar as far as the FSA are concerned" This does not surprise me as for anything to do with the well being of the IFA is pushed to the back but anything the FSA want to do takes priority as long as they can rail road it through so it makes them look good. I still am of the opinion that albeit there are some positives from the RDR, no one including the FSA have thought about the real implications rather than the theoretical implications. I still think the RDR should be delayed whilst chunks of it are disected to see the real implications before its too late.
Posted by: terry
Democratic Deficit
Politicians will still be promising to re ignite this issue in 15 years time. TSC-IMPOTENT FSA- ABOVE THE LAW
Posted by: Heard it all before
How effective is this new committee likely to be
Bearing in mind that Mark Hoban is one of it's number?
Posted by: Alan Taylor
Forlorn Hope
I have a very high regard for Mr Garnier - he has pitted his sense of justice, fair play and sheer common sense against the smug and arrogant obduracy of Mr Sants and co and, thus far, he seems to have made very little or no impression. It must not be assumed, however, that Mr Garnier will not sit back and admit defeat - he has right on his side and, at the end of the day, he is our only best hope. The vexed issue of a total lack of long stop of liability is unique to this industry and, surely, that fact must be a matter of concern for the European Court of Human Rights. On a broader issue - I have been an IFA for nearly 26 years - I have discussed quite openly with most of my clients, the principle of fees v commission and the impending removal of their choice over how they might remunerate me for my time and advice - with very few exceptions, my clients are unequivocal in their condemnation of the principle of fees over commission and they are completely puzzled as to why they will, arbitrarily, lose the right to make that choice for themselves; Mr Sants' arrogance and lack of imagination will, very soon, cost this industry dear in so many ways that he has little or no conception of - alas, it seems that he cares not either. I have no doubt that Mr Sants will accept his coming knighthood with a smug sense of entitlement - I wonder if his smugness will allow him to accept a disproportionate bonus to boot; I also wonder, as the fallout from his wilful denial of facts on the ground become more and more manifest, whether or not he will be allowed to keep either his knighthood or his bonus - not if I had any say in the matter!
Posted by: Chris Sellers
SLIPPED OR PUSHED?
15 YR Longstop 're-visiting' has sliiped under the radar. Or was it pushed (Again)
Posted by: Grosvenor
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Excellent News
I have met with Mark Garnier on a number of occasions and he exemplifies the qualities of a good MP. He won't be fobbed off, he has an understanding of fairness and balance and, above all, he realsies that the regulator is an out of control beast careering across the financial services landscape leaving bodies and debris in its wake. Well done Mark.
Posted by: Alan Lakey