FSA Chief Gets Tough on the Square Mile

Hector Sants, the FSA chief executive has said that he is “determined to correct” the attitudes within the square mile that people were not afraid of the FSA.

 

Mr Sants, has warned that people in the square mile and the broader financial services industry should be frightened of FSA, indicating that the FSA will be introducing a more proactive and thorough approach to regulation of financial services. The new approach is likely to be more intrusive and direct.

 

Mr Sants, has indicated that compliance will move away from box ticking to a thorough approach to regulation that will involve a review of the outcomes of the actions that financial services firms take.

 

In a strong warning he mentioned that the FSA may use its wider powers of prosecution to deliver their mandate. In the current climate and with a government that needs to save face, and be seen to be doing something many financial services firms should begin to re-think how they approach compliance with the newer focus on accountability.

 

The additional checks and balances that have been pushed onto borrowers in terms of their personal finance by lenders, seem to be getting pushed on financial services firms by the FSA. This surely can be no bad thing in the long run for individuals and the economy as greater responsibility with ones personal finance, can only provide greater security for the individual and investors, lenders and financial services companies.

New interest rate cut savages savers

With the bank of England’s decision to cut interest rates to a record low, savers will be particulary hard hit with income from savings taking a huge hit in the last few months. With even ISA’s not looking very appealing to savers it is increasingly becoming more attractive for savers to move their money into low risk investments with higher yields. For those investors with a good understanding of the property market, and a good handle on their personal finance some great deals can be found in the buy to let market.

With asset prices reducing, some investors with cash to hand are moving their money from savings accounts to property. Some of our readers have informed us that great deals can be found giving an opportunistic investor great yields.

If you’re a saver and have a personal story to tell us about how you plan to beat the low interest rate get in touch   

How do you feel about insuring Lloyds banking groups riskiest asset?

The BBC has just reported that the tax payer is going to take an even bigger stake in the Lloyds banking group. The treasury hopes that by insuring up to 260 billion pounds to protect the banks riskiest assets. That this will help increase confidence in an already shattered banking system. When we are all being asked to tighten up our own personal finance, we are then seeing tax revenues being ploughed into

 

The government is still desperately trying to avoid having to Nationalize the banks as this will cause it further embarrassment. But as the BBC report there are some which say that a full nationalization of the banks will do more to restore confidence then the government’s asset protection scheme.

 

Let us know what you think about chancellor’s latest announcement?