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.

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.

Just when the many pensioners in Spain, who receive UK pensions, were thinking that things were on the up, as the Euro exchange rate hit 1.18 to the pound, it has slipped back to 1.14, based on commercial rates. Anyone on holiday, who needs to get hold of Euros, will now get less for their money. While the FTSE 100 is hovering around the 4,900 mark (slightly down today) there is still hope that the economy is starting to move in the right direction. Unemployment in the UK is at 3.3 million (estimated) or if you believe one English newspaper it is nearer 6 million.

Some people suggest Spain may take another 5 years befoe seeeing serious recovery in the property market, which will mean plenty of bargains for some time for would be investors in property.