FSA Compliant??

[mikebdomain]

No problem Jonz, it is a discussion worth having...

By the way we as a company use all the aforementioned software apart from The Exchange – our advisors are free to choose their own sourcing software as long as it does not conflict with existing software, has the whole of market and it is updated daily. I have to say Trigold is the bain of my life…

I wish someone would bring out a mySQL based sourcing system…


FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

Firm FSA No:313790
Personal FSA No:MJB01557

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[ray_a]

Hi Melanie

I have to say that I agree with your comments about fee recovery which is what this is all about!

I was on a course on families and taxation last week and the comment was made don't forget to charge a premium fee!

Great as it sounds but a lot of people don't have a lot of money to play around with when the legislators are bringing in changes at increasingly regularity!

I also think the professional bodies are not very supportive to the membership! My IVA has cost £5,500 plus VAT and given my personal position and bankruptcy was not an option that was a fair price to pay! I think people don't mind paying a fair fee for good quality work and creditors who have contributed to this mess should accept the cots for sorting it out!

I will get off my soap box!

[mikebdomain]

ray_a

My understanding from previous threads is that you as a client did not pay for your IVA your creditors did, and as such are contributing towards the cost of getting the ‘mess’ sorted out.

What I am having a problem understanding is; how a third party (TIX) can on behalf of the creditors decide what an IP will charge for what can be a very labour intensive service and surely can never be the same amount of work for each and every client. Hardly, Treating Customers Fairly.


FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

Firm FSA No:313790
Personal FSA No:MJB01557

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[Andrew Graveson]

Mike,
If the creditors are paying for the process it's hardly unfair that they have a view (or influence over) the level of fees that they are paying.
I think the debate is whether the balance on IP fees has swung too far and whether this will affect the quality and availability of service from IP's to those requiring their help.


Andrew Graveson
Independent Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[mikebdomain]

I realise that thanks Andrew - my point is surely fees should be based on the amount of work undertaken, rather than a 'fixed' fee being applied to every case.

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

Firm FSA No:313790
Personal FSA No:MJB01557

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[Sadsack]

As the Experts have posted, I am in agreement that there should be no fixed fees for IP's. Each IVA is based on its complexities and the amount of time an IP spends on them. I also understand that the IP has other emplyees who assist and they too need to be paid. A case in point, my circumstances are proving to be somewhat complex and require a lot more time spent attempting to sort it out. At a flat rate fee, I hardly think that an IP would want take the task on, although I do realise that there would be some who would and not act in the best interests of all concerned. IP's who propose good solid IVA's to creditors should be applauded by them, they are at least getting a better return than under Bankruptcy. I do appreciate that creditors want their money - what are the alternatives if IVA's were not available? Creditors would end up spending £0,000's in chasing debtors, legal costs etc etc.

I bet that creditors who chase a debt of £5,000 would probably end up paying that again in costs. IP's who charge between £8 and £10k for administering the IVA and debtors who have, on average 6 creditors, I think it well worth the creditors while to accept the IP charges as fair. They are, afterall, only going to pay between £1,300 and £1,600 per debt. Under BR, they will be lucky to see a return of £500 on a £5,000 debt and sometimes nothing at all.

Perhaps I have got it all wrong and apologise if I have.

Sue



Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[MelanieGiles]

The point on fees is that all we ask for is a fair fee for a fair piece of work. Andrew raises some good points about the creditors being the ultimate purseholders, and we accept that they are ultimately our paymasters, however to value our work at a straight percentage of fees does not bear any relation to the individual nature of the work concerned.

Mike's point on fees being based upon the work undertaken is also valid - but the point is how do you value that work? If you go to a top accountancy practice you can expect to pay in excess of £500 per hour for the services of the insolvency practitioner, in my practice this is around the £200 mark, and in other firms it could be lower. If we work on the basis of time costs, how do creditors see any added value for the services of the big firm compared to the specialist practice? This is the problem, and as a profession we have to demonstrate value for money when asking for the level of our remuneration to be agreed.

I personally think that the argument has been taken too far, and hope that this marketplace will settle shortly to allow people like me to continue practicing in peace, and importantly returning those monies to the creditors who have ultimately supported us.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[ray_a]

The problem as I see it is that creditors require an IP to assist them in getting as much as they can out of a person who is in an IVA position.

At least that is how it feels when one is in an IVA!

We have to pay into the IVA the maximum that we can and some this has to include an element of the IP fee.

Insolvency is a specialised area of accountancy which has a different set of rules and difficulties from the rest of the accountancy role! I agree that I can not see how anyone dealing with someone who is self employed can produce and run an IVA for less than £5,000.

It would be a shame if a good number of IP accountants pull out of the market and this is not good for us!

I think good IP's should put something in the proposal to state just what is involved because it looks to me that creditors are putting the pressure on fees.

The sad thing is that the pressure comes from the big firm's of accountants who act for the creditors when discussing the IVA proposal!

[mikebdomain]

Melanie

Noted: Your answer of compliance monitoring.

Is there any timeline, as far as you know, from the FSA regarding authorisation and regulation of IPs by the FSA?

In your opinion is FSA authorisation and regulation required or are the current regulatory bodies sufficient?


FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker & Mortgage packager
Specialising in adverse credit.

Firm FSA No:313790
Personal FSA No:MJB01557

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[MelanieGiles]

IP's will not be authorised by the FSA - we are already authorised by our own professional body. Since Jan 07, the FSA has been prepared to listed to complaints against IPs for cases which became formal appointments after that date, but to be honest I still see most issues dealt with by the regulators rather than the FSA - who will probably just refer complainants to the regulators in the first instance.

I definately feel that the regulatory system for IPs is more than sufficient, but there is a gap on IP firms who employ IPs - as the firms themselves are not monitored. If therefore the shareholders or directors of those firms are exerting direct influence on the IP to perform in a certain manner which is inappropriate - and I am not suggesting that this happens by the way! - then the IP will fall but the firm will continue. I feel that this area needs regulation as well as the individuals.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi
Just picking up on Andrew's note about the Guardian online listing an IVA in it's "top ten financial rip offs" I have to say that I was angered at this piece of journalism.This is exactly what the whole industry is up against,poor perception from the media that is transferred onto the public.
In my view an IVA should be in the "top ten best financial solutions"
We obviously have a long way to go
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[johnz]

No problem Jonz, it is a discussion worth having...

By the way we as a company use all the aforementioned software apart from The Exchange – our advisors are free to choose their own sourcing software as long as it does not conflict with existing software, has the whole of market and it is updated daily. I have to say Trigold is the bain of my life…

I wish someone would bring out a mySQL based sourcing system…

Yeah, Trigold is fun to use isn't it?? I've just spent a week testing how Trigold intergrates with our software and MTE. Oh, the fun [:D] I hate to turn this into an advertising thing, but if you are looking at changing your software at all, let me have your contact details and I'll get someone to call you if you like. Like I said, I've only been there 6 months and have no idea about other software used by IFA's. But if I can help, I'll be glad too. After all you guys have given me enough help.

I can't believe my question caused such a debate. Was almost expecting a scrap in the car park then [:D]

I trust everyone has kissed and made up now [:D][:D][:D]

Johnz

[MelanieGiles]

Andy

I trust that iva.co.uk is responding publicly to the item in the Guardian, which clearly was ill researched and inappropriate.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[JulianSampson]

Wow

Its my first day on here, I saw FSA compliance, and I thought I would have a read! Big mistake.

All your comments are valid and to be honest I dont actually see any of the experts are contradictory- just they have differing focuses. If I can add my bit (no they all say!) then I would have to say that FSA regulation could only be a good thing! I am regulated indirectly by the FSA in our insurance mediation and by the Solicitors Regulation Authority directly in any IP work we might do. On top of that the FSA now has a right to investigate any issues on our lender conveyancing work we undertake. Whilst this has made good money for compliance experts (did we have this pre-2004?) I have to say I feel 100% happier with our systems and those of people we choose to do business with to the extent that we will refuse to do business with anyone not properly regulated or who doesnt accept external auditing.

Mike mentioned TCF in relation to TiX- whilst those three initials (the first set) are the most banded about in the last 12 months I think the drip/drip effect HAS worked and people are getting their houses in order.

The threat of regulation caused great panic in the mortgage industry- I remember our volumes being down in the November/December period but now we are all playing the long (and best advice) game. And there ain't nothing wrong with that!

Sorry to ramble!

Julian Sampson
Solicitor
Wright & Wright LLP
www.wrightandwright.com
See my article in Clean Slate magazine