I have always insisted that advisers should not be strictly regulated but that products and providers should, to avoid mis-selling.
If a product is good, what the salesman says does not matter. For example, cars that are sold meet the safety and legal standards manufacturers must adhere to but salesmen bear no responsibility for this. Please note, we are not truly advisers, we are salesmen of financial products.
After years of scandals has it never occurred to the Financial Services Authority that if poor products were not permitted nobody could mis-sell them? Permitted products should be suitable for sale and include nothing that disadvantages clients.
The assumption that all will be well if frontline troops are constantly monitored has been proved wrong. For years, product providers, banks and insurers have done what they pleased and now we’re all in a mess.
For me, the last straw was advising a client to port their Halifax product and add another product for 6.99%, only to be told by the client that if they went direct they could get it for 5.84%. The rate difference meant a saving of thousands of pounds over the three-year tie-in. How can a lender get away with charging an extra 3.45% over the period when the proc fee would be 0.4%?
This is not only profiteering, it’s also immoral and an example of the lack of regulation. My conscience will not allow me to mislead clients so I’m off.
Former Mortgage Adviser