Why are the Dolphin Trust investors not regulated by the Central Bank?

[Steven Barrett]

First of all, I haven't watched the Prime Time programme yet. But this is where there is a clear blurring of the lines between regulated and non regulated products. A SSAS isn't regulated but a PRSA is. A Loan note is not regulated. An insured pension plan is regulated. What does the Central Bank regulate? The setting up of an pension plan with Aviva, making sure I have my statement of suitability and disclosure document but once I create the self directed option, they don't regulate the loan note that goes into the regulated pension? As advisors, we are told to remove the "regulated by the Central Bank of Ireland" from letterheads and emails when dealing with non regulated products but little else.

Then there is a serious question on the trustees. They have trustee obligations on the investment that clients are invested in. But like the rating agencies giving AAA status to CFDs packaged with prime loans, they made these products available to through pensions and they were paid by the creators of the loan notes.

Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

 

[Marc]

I use the following example

Sole trader comes to us and wants some advice
We recommend they set up a limited company and employ their spouse in the business.
Both directors can establish as Small Self Administered Scheme which they do
They pay into the SSAS and one purchases a rental property and the other buys some US$ and invests in Gold

The only part of that whole process that is even remotely regulated is the transmission of the cash from the company bank account to the SSAS bank account.

Everything else in my view is an unregulated activity in the eyes of the Central Bank

The irony here is that if we try to self-regulate and impose the same standard as required by the CPC then technically the Central Bank can get shirty because it looks like we are "window dressing" to make the process appear regulated.

Maybe, the answer is to actually regulate everything.

At the very least the CBI needs to look at commissions again.

While we are on the topic, the imprudence of rental properties in pensions is set out here

Pensions & Rental Property - Everlake

At odds with much online financial advice, here are our reasons why we don’t recommend holding residential property in your pension.

globalwealth.ie

Marc Westlake
Chartered Certified and European Financial Planner
www.globalwealth.ie

 

[Steven Barrett]

I use the following example

Sole trader comes to us and wants some advice
We recommend they set up a limited company and employ their spouse in the business.
Both directors can establish as Small Self Administered Scheme which they do
They pay into the SSAS and one purchases a rental property and the other buys some US$ and invests in Gold

The only part of that whole process that is even remotely regulated is the transmission of the cash from the company bank account to the SSAS bank account.

Everything else in my view is an unregulated activity in the eyes of the Central Bank

The irony here is that if we try to self-regulate and impose the same standard as required by the CPC then technically the Central Bank can get shirty because it looks like we are "window dressing" to make the process appear regulated.

Maybe, the answer is to actually regulate everything.

At the very least the CBI needs to look at commissions again.

While we are on the topic, the imprudence of rental properties in pensions is set out here

Pensions & Rental Property - Everlake

At odds with much online financial advice, here are our reasons why we don’t recommend holding residential property in your pension.

globalwealth.ie

Marc Westlake
Chartered Certified and European Financial Planner
www.globalwealth.ie

That's the thing. You try to be transparent and disclose everything, even when you don't have to and you can be accused of "window dressing". Too much focus on ticking boxes instead of actually working in the client's best interests.