Financial planning chief warns of advice ‘apocalypse’

By , 7 Mar 18

In a scathing note aimed at Brussels, a senior adviser and industry association boss has severely criticised the European regulatory “circus”.

No need to panic in Malta

Moving abroad can incur a substantial amount of paperwork and there is a risk that some elements are overlooked or duplicated. Residency Visa Your employer is responsible for obtaining a residency visa for you and your family. This may take some time and you will need to surrender your passport temporarily and you cannot travel out of the UAE while your visa is in process. Tip: You will need six months validity in your passport to obtain a residency visa and travel around the region. Health insurance All medical services (except emergency) must be paid for in the UAE so make sure you have adequate medical insurance in place when you arrive. If this is not initially provided by your employer you should consider travel insurance from the UK until your employer’s health insurance commences. Bring vaccination certificates and children’s health records (red books). Emirates Identity Card This is mandatory for all UAE residents. Tip: Have plenty of passport photos available for registration.

The deputy chair of the European Federation of Financial Advisers and Financial Intermediaries (Fecif), Jiří Šindelář, said the combined regulatory burden was not only having a “devastating effect on the [small and medium-sized] businesses themselves, but will also have a detrimental cost for the customer”.

Šindelář, who represents Fecif’s 245,000 members, argues the “savage regulatory movement” was creating huge cost pressure, which has been “intentionally underestimated by the regulators”.

“Less visible, [are the] intangible payments related to market distortion caused by over-regulation,” he said.

“Maybe the most important example: as the industry barriers and fixed costs begin to raise, because of new exams, codes of conduct etc., small and medium enterprises will be slowly pushed out of the market.”

He argued the “apocalypse” in Europe’s largest advice market, Germany, could be directly traced to these unintended consequences triggered by Mifid II (markets in financial instruments directive) implementation.

Šindelář warned: “Both implicit and explicit costs are often not reflected by the regulators in their cost-benefit assessments. This is done intentionally, as correct evaluation would totally prevent many colossal regulatory changes from happening.

“Nevertheless, the customer in the centre of things, should always account for the price of the protection they are forced to enjoy.”

Technology

Šindelář has little time for technology as a cost saver to mitigate the regulatory burden.

Using a comparison with Uber, he argues that clients could be forced to use lightly regulated and inferior robo-advice solutions.

In a call to arms, he urged advisers to educate clients to see the value of advice and for clients to lobby MEPs to row back on heavy handed, and ultimately more expensive, regulation.

Tags:

Follow by Email
Facebook
X (Twitter)
LinkedIn
Share

Related Stories

2 thoughts on “Financial planning chief warns of advice ‘apocalypse’”

  • Christopher Lean says:

    Technology is an excellent way to mitigate the regulatory costs and deal with compliance. Those that do not embrace technology will be left behind.

    This leaves more time for the adviser to provide financial planning advice to his/her clients, not less.

Comments are closed.