Transparency call for financial advice market
Improved transparency is needed in the financial advice market, a consumer group has said today.The consumer group Which? claims that consumers are often sold products which may not necessarily be suitable for them.Spokesman Dominic Lindley said that because advisors are paid commission from companies that sell financial products consumers often receive a sales pitch rather than proper advice."We think the current model of financial advice is failing many consumers," he told BBC Radio Five Live."There is an inbuilt conflict of interest in that most advisors are paid for by commission offered by the product providers, which can result in people being sold financial products that aren't right for them."Also, many consumers are confused about the different types of advice available and ultimately how they're paying for it, and many advisors are not complying with the FSA rules that require them to be clear with consumers."His comments came before the Financial Services Authority published its review of the way in which financial products are sold.It will examine how financial advisors are paid when selling products such as investment bonds and pensions, following complaints that they are too close to the companies and products they recommend.
Short-term pain long-term gain
As government forecasts for the performance of the UK economy in the short, medium and longer term come under more and more scrutiny there is no doubt that UK taxpayers will be in for a period of "short-term pain and long-term gain" with regards to taxation. However, the level of pain felt could increase substantially if the UK government's economic forecasts are found to be overly optimistic in t...Read More
Six months' salary 'ideal emergency fund'
Six month's worth of salary makes the ideal emergency fund and everyone should have at least that amount saved up for a "rainy day", it has been claimed.According to Hargreaves Lansdown, it is important to save some money so as to ensure you can cope with any surprise outlays, or a loss of earnings caused by any reason.Ben Yearsley, investment manager with Hargreaves Lansdown, suggests that six mo...Read More
Is debt consolidation as easy as many people assume?
As personal debt continues to grow in the UK more and more people will be forced to consider debt consolidation in order to alleviate pressure in the short to medium term. While the process of debt consolidation is fairly straightforward in principle, i.e. you bundle all your debts into one manageable package, is it really that simple?
The truth is that debt consolidation, and the t...
Shareholders fight back at Punch Tavern meeting
In a sign of the times, shareholders at yesterday's meeting of Punch Tavern investors voted down the latest remuneration package for the company's directors. While there was a similar revolt last year, with 36% of investors voting against the remuneration package, this year saw a significant 55% vote against the package and hence the company has withdrawn the offer. So what is going on? A numbe...Read More
UK public borrowing balloons to record high
UK public borrowing rose to a massive £19.9 billion in May as expenditure remained fairly high and income tax receipts continued to fall. The combined deficit for April and May came to an enormous £30.5 billion with some experts suggesting this figure will rise further before eventually falling back. The fact that Alistair Darling has already admitted that the UK public borrowing deficit will re...Read More