Many of you are probably extremely puzzled about my 'Letter' explaining my 'Exit' from the London Stock Exchange which was sent out this week by the firm that I have been attached to as an Associate these last 7 years.
Today is the last day, barring some miracle, that I am working on the London Stock Exchange and frankly I can't wait until 16:30 hours later today.
I know that I have made the correct decision.
Just in the last hour 3 emails have arrived (alongside the other 70 or so I receive daily) all commenting on important matters of REGULATION. As many who might have read my blog these last few years know full well I believe passionately that my favourite topic, REGULATION is NOT just part of the problem but is in fact THE problem. How do I know this? Well, I had the good fortune to accompany my father one day on to the old floor of the old Stock Exchange in the early 1960's when Hoblyn & King was circling various firms. In those days the brokers spent 100% of their time (when they weren't entertaining in their clubs and local watering holes) dealing on the market, studying stocks & shares (the old terms are always the best) and speaking to their clients who were their life blood. This old way of doing business always put the client first and all aspects of the firms, from the office manager to the the most junior settlements staff as well as the famed tea ladies, all understood that it was their roles to support the brokers in this great adventure. The adventure was indeed a daily buzz as all around everything to do was investment and client driven. I still believe passionately that this should be the case.
The first email was from a colleague wishing me luck for the future and finished by saying that
"I can understand your point of view but you are more than capable of doing these stupid exams, RDR or whatever so why give up if you love the business".
I've lost count of the number of times people have said this to me in the last 18 months. The next 2 emails received today may explain why the "capability" argument is a nonsense. The 1st email is from the iFS School of Finance which used to be the Institute of Bankers in the old days. Just like the LSE it too got hijacked somewhere along the way. This is the thread of the iFS email;-
Dear Mr Hoblyn
Essentials of supervision: helping to prepare your firm for the RDR
Don't forget to book your place at our forthcoming Institute event with Charles Cattell, founding Partner of the Cattellyst Consultancy, which is being held on Tuesday 10 July! Charles is a consultant and training practitioner with extensive expertise across the financial services sector.
This taster workshop will provide an opportunity for those with supervisory responsibilities for advisers under the RDR to explore the nature of those responsibilities, to identify some of the key activities which the role demands of them and to consider how to address some of the challenges they are likely to face.
By the end of the workshop, participants will be:
• aware of the expectations that the firm and the regulator place on them as supervisors
• able to recognise some potentially challenging supervisory situations and be equipped with some pointers and tips for handling them
• able to identify some specific responsibilities for supervisors created by the implementation of the RDR
Has everyone read this as you'll be tested on this subject later? Actually once digested it says absolutely nothing. In fact it is claptrap and reminds me of that course that health & safety officers preach to show decorators and firemen how to climb ladders.
The 3rd email though is my favourite., It comes from Goodacre, a firm that has studied RDR to the nth degree and makes rather a splendid living from the 600 odd pages that the RDR document encompasses. It reads;-
Gap-fill training really needs to be completed in the next couple of months to allow sufficient time to process the necessary registrations. Goodacre has designed specific training courses to fulfill the gaps between CISI qualifications and the new RDR (Retail Distribution Review) standards.
LSE Gap-fill is running over four full-day sessions in London from 09:00-17:00 each day on the following dates:
10th, 17th, 21st & 31st August
A full day session of Securities runs from 09:00-16:00 in London on 6th July
We are also running PCIAM Gap-fill training and Derivatives training on an in-house basis.
CPD Certificates will be issued on completion of the training
In the column attached to the email it proudly states;-
4-day LSE Gap-Fill Training
£992+VAT
Covering the 28 core hours or Financial Services, Regulation & Ethics, Investment Principles & Risk and Personal Taxation.
1-Day Securities Course
£225+VAT
Covering the main topics of The Securities Market, Dealing Principles, Clearing & Settlement
Influences, and Behaviours & Risks.
So there you have it. The RDR is a milking machine for all concerned and the best part of the RDR is that it isn't going to go away. Investors (let's call them clients or customers but I suspect many will think that they're suckers as many brokers and wealth managers will be away from their desks doing all this compliance gap filling alongside a host of other compliance driven courses) are going to end up paying for all this against a backdrop of an ever decreasing standard of service.
Just how am I as a stockbroker in UK supposed to talk to market counterparties, attend market driven meetings (I get invites daily), liaise with 150 clients, deal with settlements issues and at the same time analyse, recommend, buy and sell securities when I'm being dragged away to attend claptrap meetings? I'm afraid 'life is just too short' for all of this.
Next stop.......well has anyone guessed what I'll be doing and where I'll be doing it from in future?
Hasta la vista FSA! And the same to you FCA, having rebranded yourselves. The age of the ninkumpoop is upon us.
ps My exit letter will be published in due course along with more comments of my real life experiences in the age of the fascist compliance regime.
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