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(From Post Magazine)
Byline: Ed Vinales.
The regulator must reconsider the ban on brokers including goodwill on balance sheets or risk breaching its own treating customers fairly mantra.
Writing in Post this week, Tony Cornell, former CGU head of broker relations, expressed concern over industry silence on the issue, which forces firms to deduct goodwill from balance sheets from 14 January 2008.
He also warned that consumers will be impacted as the rule change favours those with financial might and will reduce consumer choice.
Mr Cornell told Post that the Financial Service Authority's rule means brokers will not be able to secure debt against goodwill, which will restrict their ability to go through management buy-outs or to acquire other brokers without liquid assets. "The big guys will be rubbing their hands with glee. They know they will be able to pick off smaller players who can't make a ...