Moonstone: Broker Bugbears

The word “Bugbear” is defined in the Collins English Dictionary as:

a. A thing that causes obsessive fear or anxiety

b. (Myth & Legend / European Myth & Legend) (in English folklore) a goblin said to eat naughty children and thought to be in the form of a bear.

Both definitions apply in varying degrees to our industry.

Moving out of one’s comfort zone where you have been safely ensconced for many years is an unpleasant experience, more so when the change is forced upon one, as opposed to making a voluntary decision.

The perceived “bear” threat became a reality last week when the FSB sent out a letter stating its intention to act against “naughty children” - FSPs who are in arrears with the submission of compulsory returns such as financial statements and/or compliance reports.

About six months ago I drew up the following list of matters that crop up regularly in responses from readers, but I am sure that there are others which add to your frustration levels and high blood pressure.

1. The cost of running a practice.

2. Impact of constantly increasing regulatory measures on productivity.

3. Impact of client’s decreasing disposable income on new business and retention of current business.

4. Impact of negative media coverage on new business acquisition.

5. Poor service levels from product houses.

6. Product complexity versus FAIS requirement for simplicity.

7. Stifling consumer-centric regulatory measures.

8. Challenges resulting from Information and other technology demands.

9. Compliance with all relevant legislation.

10. Regulatory exams

The idea with this article is twofold.

We would like to invite readers to share with us other issues which bug them (and how they think it can be resolved) and, secondly, we would like to determine which ones are the really nasty ones which require priority attention.

We will place the first six on our website poll for a week, then the rest next week, and reader inputs in the third week. All that is required is for you to click on this link and vote for the ONE area that you think requires the most urgent attention.

We are not a union, nor do we have a mandate to act on your behalf, but through the power of the pen we can create awareness where it matters. This newsletter today goes to 12 339 readers directly, and possibly another 6 000 or more via onward transmission or placement on intranets and other websites. The better the response, the more representative the information becomes.

Articles on the most pressing matters and requests for responses from those able to make a difference to the issues raised can at the very least open communication channels. We firmly believe that unblocking theses channels will contribute to better understanding and the resolving of at least some of the matters that currently lead to unnecessarily high stress levels.

Your contribution is very important to the success of this drive. We will not publish any names, unless specifically requested.