Jeremy Goford, outgoing president of the Institute of Actuaries says commissions being paid to IFAs are hurting consumers and result in un-necessary products being sold.
Such payments merely drive competition to sell rather than provide good advice: Goford cites the lack of advice to repay debt because there are no commissions involved in such advice, reports The Daily Telegraph
"The role of the actuarial profession is to speak out when we spot these flawed structures. Our responsibility is to research, inform and speak out so that those with the power to make changes understand the implications of those flawed structures and many mitigate or eliminate them, if they choose,” Goford says.
STOCKBROKER BREWING Dolphin has been criticised by a judge for not handing over tape recordings of the actions of one of its staff involved in a £30m lawsuit brought by the client of a financial adviser.
The case centres on allegations the adviser urged a Brewing Dolphin employee to produce false trading records to send to her client in 2000, reports The Daily Telegraph
The discussions were only recorded by accident because the employee was using a trading desk at the time.
The judge says it is “hard to understand” why the tapes and transcripts – which run to 18 hours – have not been handed over sooner because of the implications for changes to the lawsuit standing against the company, the Telegraph says.
The adviser was expelled from register kept by the former Securities and Futures Authority and ordered to pay £30,000 towards the cost of the investigation.
MORTGAGE DEALS may be hanging on every word from the Bank of England later today, but market swap rates suggest interest rates will rise less fast than feared by many, The Times writes.
Most pundits expect another quarter percentage point rise by August at the latest, but swaps rates suggest those looking to remortgage to fixed rates may want to hang on for a couple of weeks, the paper says.
RUSSIAN BANKING regulators are rushing to backtrack on tough new liquidity criteria after previous measures resulted in a run on banks that has threatened to destabilise the entire retail banking sector.
The FT reports the country’s central bank has now relaxed minimum reserve requirements and pledged to support a proposed takeover of Guta Bank, which this week closed its branches to customers after a run on its cash.
Guta will be merged with a state-controlled bank, which should create a single company capable of providing some competition to Sberbank, the country’s biggest state-owned bank.
ENRON PROSECUTORS have not laid the ghost to rest just yet and yesterday saw former chairman and chief executive Kenneth Lay become the highest ranking executive of the collapsed energy trader to be hit with criminal charges, the FT reports.
The indictment has come through a so-called grand jury, and the charges are expected to be matched by civil charged brought by the Securities and Exchange Commission, the chief regulator of stock markets in the US.
Former chief financial officer Andrew Fastow got a 10-year prison sentence earlier this year, despite striking a plea-bargain with prosecutors to help the government’s case.IFAonline
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