Lobbying MPs is an exercise in futility

It certainly promises to be an interesting year, with the final elements of the seemingly endless discussions over the retail distribution review finally slotting into place over the coming months.

Judging by the many comments I have read in Money Marketing and on websites that feature financial advisers’ comments, the overwhelming body of IFA opinion seems to be set against the RDR, at least publicly.

Shortly before Christmas, while on a visit to London, I took the opportunity of meeting a few IFAs whom I respect, even if I do not necessarily share their views. One, whom I had always thought of as opinionated but not remotely an activist, had gone so far as to lobby his MP about key aspects of the review, which he regards as highly dangerous to the future of independent financial advice.

His hope is that Conser-vative MPs will halt or seriously amend the RDR process if and when they win the general election.

Unfortunately, he told me, his own MP - a Tory - appeared to be highly ignorant about the RDR and what it entailed. Moreover, this particular MP told his constituent that when push came to shove, his “instinct” was to back the FSA because advisers were “renowned” for misselling financial products to clients.

The IFA then told his MP he was a disgrace to his party and he would never get his vote. Not a successful lobbying exercise, methinks.
Perhaps this helps explain why Aifa was pushed into warning IFAs last year that ill-conceived lobbying of MPs could have a negative effect in terms of achieving what they wanted.

The sad fact is that Aifa - and IFAs it has tried to arm with lobbying arguments - are unlikely to succeed. Parliament is highly febrile and it will be almost impossible, as we draw closer and closer to the election, to persuade anyone to listen to any point of view, sensible or otherwise.
Moreover, while many Tories may hate the FSA for all sorts of reasons, they almost certainly do not do so in this particular context. Tighter regulation of the financial services industry is a vote-winner, no matter what political party you belong to.
I have some sympathy with IFAs. Lobbying can be a useless exercise.

One of the problems, it seems to me, is not about the basic notion of lobbying as such but what it is that you tell your MP. Here, it strikes me that IFAs could be on a hiding to nothing in some areas.

For example, if you go to your Parliamentary representative and tell them that the proposed QCF level four qualifications you are required to obtain by 2012 are too onerous, do not expect much sympathy.

Similarly, trying to compare yourself favourably against banks in order to press the point that regulation of your activities need not be quite so onerous is not a tactic that is likely to work well.

Not that I can lay serious claim to being a successful lobbyist. Once upon a time, back in the days when I used to work as a nurse, our trade union asked its members to lobby their MPs as part of a campaign against low pay in the NHS.

Responding to our union’s request, about 20 of us toddled off to see an MP at his surgery meeting one Saturday morning, waving our pay slips.
The “lobby” degenerated somewhat and our little group started booing and shouting at our Parlia- mentary representative. Needless to say, the MP never really did sign up to our campaign against low pay.

My guess is that attempts to persuade MPs to get rid of some of the RDR’s worst aspects will meet with a similar fate.

Source:moneymarketing.co.uk/