The FSA’s long awaited Retail Distribution Review put the cat among the pigeons this week. By 2009, the market may be split into two camps – with only those advisers holding the Diploma in Financial Planning being allowed to practise in complex areas. Given that only about 6% of advisers are thought to hold this diploma, (which last week was classified as being a degree equivalent), we should see the market polarise in an entirely new way. Those who have bothered to study their subject rather than try to make a quick buck off what is no more than an O level will see their efforts rewarded, while the cowboys should be driven out. Interestingly this development is announced within a fortnight of the FSA’s admission that depolarising the market and forcing advance disclosure of status and costs had failed completely to eliminate commission bias or push the market towards fees. Finally the penny has dropped – consumers have little confidence in financial advisers because it’s just too easy to become one. Independent, tied, multi-tied or whole of market is irrelevant – what matters to consumers is that the adviser actually has a clue about investment strategy, tax, trusts, risk management and so on. Roll on 2009!

If you enjoyed this post, make sure you subscribe to my RSS feed!

From 1 June 2007, HMRC rules mean that anyone setting up a discounted gift trust for Inheritance Tax avoidance needs to take care over “medical underwriting”.  It’s always been a matter of debate as to whether or not the “discount” is something a life office can decide, or whether it’s a matter of fact.  The new rules are clear - get medical evidence at the outset to prove the health of the settlor. Don’t try Inheritance Tax planning on the cheap!

If you enjoyed this post, make sure you subscribe to my RSS feed!

Yesterday interest rates were put on hold but will it stay that way? The general consensus is that we will be due one more 1/4% increase to really keep inflation under control.

 The MPC (Monetary Policy Committee) sit down once a month to discuss how to keep inflation stable and the easiest way for them to affect inflation is to change the interest rate. But how will there decision affect you, the answer is in different ways depending on your age. Read the rest of this entry »

If you enjoyed this post, make sure you subscribe to my RSS feed!