In this section:
The devil is in the detail - 15 year longstop - the story continues
As this particular issue rolls on toward the conclusion that it should certainly merit, it is very clear that someone is being economic with both the truth and facts of the matter to benefit an agenda as yet unknown.
As the FSA says we should be very afraid I am inclined to comply in this case. They have taken action, without open consultation, that drives a coach and horses through the law of the land.
Like other professions, incorporated or not, financial advisers enjoyed the protection of a 15 year longstop by section 14(b) of the Limitation Act 1980 until the Financial Services and Markets Act 2000 (FSMA) came into force on 1 December 2001.
For those who trade and are blissfully unaware of this very major commercial time bomb placed in an IFAs future road map, yes this will affect you! It is summarised very well by IFA Alan Lakey, in his recent submissions to the House of Commons Committee on Human Rights.
Until December 2001, when the Financial Services & Markets Act (FSMA) came into force, financial advisers enjoyed the protection of the 15 year longstop from the Limitation Act in the same way as other professions.
The FSA was empowered by FSMA to establish rules under the compulsory jurisdiction that operated from December 2001 but were required by secondary legislation to provide legitimate expectation for the voluntary jurisdiction that operated before December 2001.
On 18 September 2003 the FSA Board removed the 15 year longstop for the voluntary jurisdiction that operated before December 2001.
In so doing, the FSA has breached secondary legislation and the human rights of advisers.
We feel it important that you get some idea of the hard work being carried out on behalf of IFAs in particular and the industry in general. Click here to see the mail trail from Alan Lakey to Dr Egan at the House of Commons Joint Committee on Human Rights, plus reply received from Lord Myners from which you can draw you own conclusions. The mails here are a master class on the importance of research, or lack of it in the case of the reply from Lord Myners.
It was said that there are only two certainties in life - “Death and Taxes”. This Government has produced a third. “The truth will out when faced with determined and reasoned argument in the face of bare faced lies and falsehood”!!
Article last updated: Jul 1, 2009
