The Sunday Times reports that depositary companies such as Northern Trust are warning fund managers to ditch risker stocks and that suspensions of more than three months will not be tolerated.
This throws up very many issues of responsibility. Is this a much-needed prudential approach or an overreaction and overreach? Note a lot of this story is on an ‘understood’ basis.
I wonder what IFAs think of this matter – is this fair or is it a matter of concern that it won't be managers in the driving seat?
IFAs have not taken in the implications of the FCA’s Product Intervention and Product Governance rules says Cathi Harrison is founder and director of Para-Sols.
She says the crucial wording is: “A product recommended by an adviser must meet the needs of an identifiable target market, by appropriate distribution channels,” and the crucial word within that is 'identifiable'.
She says following this rule encourages better client segmentation and better construction of centralised investment and retirement propositions for different client segments. Some advisers may be be concerned however about how many CIPs this implies that they need to have.
Shelley McCarthy is taking over as managing director at Informed Choice and is interviewed here about her plans.
Embark Group is to scrap ATS’s flat fee model for new clients.
Aegon argues that the contingent charging ban will result in a sharp shrinkage in the supply of advice. I don’t think one can argue with this. The question is whether it is worth it.
Pension minister Guy Opperman says there is no quick fix to the problem of net pay workplace pensions. I wonder if this would still be the case if it became an issue in the election?