Barclays sense what is coming

1984ReturnsForReal_2

They have just dumped 1000 (yes, 1000) financial advisors.

shortchanged_2

Are they being swapped for debt management advisors?

1984ReturnsForReal_2

shortchanged wrote: »

Are they being swapped for debt management advisors?

Or taking debt recovery in house

michaels

Could this be linked to Martin's story on the FSA wanting to regulate financial products more tightly?

The financial markets are not quite a zero sum game - they make profits by taking a few percent here and there from every financial product sold to 'ordinary Joe's' and then share this profit around between themselves in a nice loaded game where the winners take a large proportion of the spoils as bonuses where as the losers are bailed out by their shareholders.

Where it has been going wrong is that the few percent commission charged is overcharging, hence the transfer of wealth from other sectors to the financial sector overall - by definition fund managers will not beat the market on average so the most rationale investment decision would be a minimum cost market tracker, but Joe Public have been sold a vision of making above average returns and have paid a premium to try and secure this.

If the financial sector is regulated to reduce the returns from this confidence trick then there is obviously less need for tied financial advisers etc.

Of course this is another example of the Govt deciding that they know better than us what we should spend our money on - this may be true but it also undermines individual freedoms - you pays your money and makes your choice.

Conrad

Several large players saw the decline of mortgage brokers as an opportunity to fill the gap. Nationwide took on thousands in the last 2 years. However, the lesson from history was not learned - lenders did not realise just how complex the cicumstances of a huge proportion of customers can be.
The FSA rules on responsinble lending also mean many a grey area applicant is now refused just in case of future litigation. Great for those waiting landlords........

purch

Barclays and financial advisors are an oxy thingiemebob :eek:

Thrugelmir

Conrad wrote: »

Several large players saw the decline of mortgage brokers as an opportunity to fill the gap. Nationwide took on thousands in the last 2 years. However, the lesson from history was not learned - lenders did not realise just how complex the cicumstances of a huge proportion of customers can be.
The FSA rules on responsinble lending also mean many a grey area applicant is now refused just in case of future litigation. Great for those waiting landlords........

Surely more a sign. That they see no recovery or growth in activity levels for the foreseeable future.

A 1,000 staff is a good cost saving. Time to buy the shares.

Conrad

Thrugelmir wrote: »

Surely more a sign. That they see no recovery or growth in activity levels for the foreseeable future.

A 1,000 staff is a good cost saving. Time to buy the shares.

The profits on retail financial services for large organisations are too meagre.
The regulations now tie them in knots.
Real people have all manner of complex lending scenarios, that although they often make 'common' sense, they are at odds with the letter of regulation.

I could bore you with dozens of example:rotfl:

One client I helped recently had previously wasted 3 months with thier exisiting lender, Santander trying to raise £300,000 to buy a property at £600,000.

They had total property assets worth £4m, with a total £100k borrowing.

It was just too complex for a typical retail Bank compliance team to handle as one of the 4 family members involved wanted to live in the property being mortgaged.

I earned a pretty penny by myself placing the case with......................................................

Santander commercial!!:rotfl: at a commercial rate of base + 3.5%.

This family make £175k in rent alone, let alone thier own cosiderable earned incomes.