David Bates Financial Adviser

So can the major governments dictate to the banks on how to reward their staff and waht businesses they should be in? I doubt it very much. If the banks don’t generate profits from astute investment skills, then governments lose tax revenues, businesses cannot borrow money and the economy stagnates or continues to flounder. Leave the banks to do what they do best. By all means banks should learn the principles of sound lending, but apart from that all this rhetoric, particularly in the UK, where the parties are canvassing your vote in the impending election, the banks are being used as the scapegoat for government failings.

FTSE 100 gained 22% over the year ending at 5418. A staggering 56% increase from March to the year end. The record growth since 1997. Euro exhange rate up from 1.02 to 1.12, which represents some comfort to expats in Spain, but I am sure they would prefer to see it go higher. Despite Mr Zapatero’s comments, Spain will continue in the doldrums for quite some time.

As predicted the stockmarkets are recovering quite nicely. However there has to be concern over the exhange rates. Low UK inflation is having a negative effect on the situation, thus prolonging the difficulties for ex-pats living in Spain. With interest rates set to stay low, one cannot see the position improving in the short term.

I suspect that this will change when the official announcement that the UK is not in recession comes at the end of the month.

The FTSE 100 index rose by 21% in the past two months, which is an all time record. It remains to be seen whether this performance can continue. Indications are that it will continue to do so as confidence returns to business and banking. Yesterday saw the agreement of the 5 major UK banks to limit future bonuses after this year’s round in December.

The banks have taken a lot of stick over bonuses and are being used to deflect responsibility and blame for the government, who failed to control their activities properly for over a decade. One point not mentioned about performance bonuses is that these are negotiated and agreed with the unions as aprt of the pay structure talks, and from my experience in working in a banking sales orientated environment, you did not get a bonus if you did not get your targets.

All companies have some sort of incentive scheme to motivate staff and recognise their contributions to the financial performance of the business.

Labour continue to place a smokescreen on their failings, with a lot of policies dreamed up on the back of a fag packet. I have never seen Gordon Brown as angry as yesterday, when he stormed off after a BBC interview still attached to the microphone. Anyone who saw his thunder filled facial expression, as he glared at the interviewer, will see that he is not a very nice man at all.

Ironically, Lord Mandelson would make a very good leader. Even if you don’t like Labour or their policies, here is a man who is very articulate, and who comes across as being “reasonable”.

Why should financial services companies treat their “staff” in Spain so unfairly? I am aware of a situation where, through no fault of his own, a financial adviser was pushed to the point of financial ruin , by the draconian treatment of his “employers”. Fair enough they did advance him money in the first months of his time there, but events outside the company’s control meant that the company would not get paid its commissions, as some investment fund managers shut up shop, temporarily.

Facing mounting finnacial pressures, he had no option but to resign and try to do something else. No-one can survive on fresh air. The Spanish system does not offer any help or support to people with hardship, and the mortgage lenders are far from helpful. The situation was that the commissions received from his business now, were more than he had been advanced, so he should have been paid…not a princely sum, but enough to keep the wolves at bay.

The company, alleged that he was in serious breach of contract, even though he had not been able to honour the 3 month notice period, because the company cut off access to all systems, within a hour of his resignation being received.

Faced with this situation, then I guess anyone would have tried their utmost to get paid what is their entitlement, and would have followed whatever route after their survival instincts.

In Spain financial advice compnaies get away with murder, because despite being regulated via “passporting” by the FSA , who cannot sanction activities on the ground in Spain, they go on making up the rules as they go along.