Another Seven Years of Regulatory Problems

Introduction

The subprime loans crisis has been caused by securitised mortgages. x UK involvement has resulted from the demutualisation of building societies x and fixed-rate mortgages. x Northern Rock was rescued from collapse by the government, because it is politically unacceptable for depositors to lose money. It now has a government guarantee. x There should arguably be a government guarantee of deposits in UK-based banks and building societies, as recently (October 2008) introduced in: Australia, x Denmark, x Germany, x Greece, x Ireland. x This would discourage "light touch" regulation, x which is proving costly for the public, the government and even the industry. x

After 1st December 2001 the Financial Services Authority (FSA) started to regulate as a regulator under the Financial Services and Markets Act (2000). The Parliamentary Ombudsman report Equitable Life: a decade of regulatory failure (2008), x is concerned with the previous decade. Two shorter summaries are: How the Financial Services Authority and the Treasury betrayed Equitable's policyholders (2008) x by Alex Henney; Whatever happened to principles (2006) by Simon Bain:

"The lack of supervision of Equitable Life allowed the insurer to create for itself a regulation-free zone." x x

After 1st December 2001, the FSA is not covered by the Parliamentary Ombudsman. Who guards the guards? Quis custodiet ipsos custodies? They should be open to public inspection. But the Financial Ombudsman Service does not come under the Freedom of Information Act (2000). x The public should be consulted, but there is only a Code of Practice on Consultation rather than compulsory rules. x They should be able to inspect inspectors. But they cannot do so in the case of the new inspectorate of the UK Border Agency, which does not have a website or webpages. (The UKBA website did not even say who is the chief inspector until I brought this to their attention on 13th May 2008. x It does now. x )

Acronyms

The most recent text is an update to: Stakeholder Pensions: The Hidden Charges (2001)

The Financial Services Authority

October 2008 Protecting Savings
September 2007 "Clearly Doesn't Work"
July 2005 FSA Terminology
March 2004 New Labour and the Financial Industry

The Financial Ombudsman Service

May 2008 The Lord Hunt Review

Pensions - stakeholder/NPSS

August 2008 Personal Accounts - Charges
February 2007 "More Choice - Lower Returns"
February 2006 Comments on the Proposal for a National Pension Savings Scheme
January 2006 The National Pension Savings Scheme
December 2005 Here We Go Again!
October 2005 Reasons for Introducing A New National Pension Scheme
September 2005 The Cost-Efficiency Problem
September 2005 Proliferating Peripatetic Pensions
May 2005 Turner Opportunities
July2003 Consumers' Association seminar
April2003 A Cap or a Con?
February 2001Stakeholder Pensions: The Hidden Charges
November 2008(updated)

Pensions - general

August 2006 Response to the White Paper, Security in Retirement, Executive Summary
May 2006 Response to the White Paper, Security in Retirement
October 2005 Cool It
October 2005 Pensions Reform
September 2005 The Four Options
September 2005 Are you a victim of the latest multi-billion pound pensions mis-selling scandal?
September 2005 The Cost-Efficiency Problem
September 2005 The Pensions Meltdown
October 2004 The First Report of the Pensions Commission

Personal saving - costs

December 2006 Survey of annuity pricing
October 2006 Transaction Costs
October 2005 Bundled Brokerage and Soft Commissions
November 2005 Half-Hidden Costs
October 2004 Total Cost and Charges of the Financial Industry per Head
December2003 A Charter for Churners *
September2003 "Savers face fresh hike in fund fees."
January 2003 The Disclosure of Dealing Costs
March2002 Comparative Tables: The Hidden Charges

Personal saving - general

June 2004 Child Trust Funds and Stakeholder Products Revisited
August 2004 Myners Review of the Governance of Life Mutuals ( PDF file ) *
January2004 Restoring Confidence in Long-Term Savings
November2003Child Trust Funds *
July2002 Sandler Review
June2002 Problems and Solutions
September2001 Who can you trust?

Lost investments

January2007 Lost Investors - memorandum to Treascom *
May2004 The Population Register
April2004 Lost Investments and Investors *
September2003 Orphan Funds and Unclaimed Assets
July2003 The Use of Personal Identity Numbers to Keep Track of Customers and Investments

Government interaction with the public

August2008 Difficulty Obtaining Replies to Enquiries
September2008 The Publication of Responses to Consultations

* published


Website started: February 2001

Stephen Wynn x

E-mail: centre@boltblue.com