It has been an interesting week for the debate regarding the compensation scheme – a campaign prompted by a letter from David Penney.
It has been a bit two steps forward, one step back. The step back has been the City minister John Glen suggesting that the power to change the scheme resides with regulators.
The PFS has now put together its own template letter while asking advisers to be sure to adapt it as letters that are too similar can sometimes be screened out.
Ronnie Cowan, MP of Inverclyde, asked the Treasury what discussions officials had with stakeholders and representatives from the Financial Conduct Authority on its review of the FSCS levy calculation.
In a written response, John Glen, MP for Salisbury, said it was for the FCA and the Prudential Regulation Authority to consider the "impact of the levies on the firms they regulate, acting in line with their statutory duties. The government has no role in setting the levy".
However, a big step forward is the chair of the FSCS Marshall Bailey saying he is open to reform.
In other news, Aegon’s Fiona Tate makes the case for scrapping what she calls the terrible annual allowance.
All of the these political requests have to be looked at in light of the dramatic change at the top of the Treasury. Sajid Javid faced with an ultimate to merger his team of advisers with those of Number 10 resigned. Many believe the PM’s adviser Dominic Cummings in completely in the ascendency as the Financial Times reports.
The new Chancellor Rishi Sunak was at least in the second most important job at the Treasury as Chief Secretary. The Daily Mail suggests that borrowing rules could be relaxed as a result. Javid had targeted getting every day spending back in balance by 2023.
I do think this presents an interesting challenge for anyone trying to influence policy. How long do you leave it for the Chancellor to settle in? He has, of course, got a budget to deliver in just four weeks.
This is a little ominous – the FCA is writing letters to a sample of advisers asking them to provide data on their clients who are receiving income in retirement, specifically the advice given, how the client is receiving income, what ongoing advice is being provided and what fees charged.
The FCA's interest in pensions transfers has broadened to an interest in retirement advice more generally.
