The failure of an American bank no one much has heard of might not sound like a big deal. Let’s hope it isn’t the thin end of any Northern Rock (almost kids ask your parents) wedge. What is a big deal is the abject failure of regulation, on both sides of the pond, which it represents. The Silicon Valley Bank was both approved and supposedly regulated here as well as in the US. Once again it seems that, while we small fry have to stress over and tick every box imaginable to prove we’re both solvent and doing the right things, the basics are ignored for the bigger boys. Banks take in deposits and pay interest, then lend and collect interest. Smaller banks usually have to pay over the odds to attract deposits. If interest rates rise, the equations change. However, regulatory ‘stress testing’, introduced after the Big Crash is supposed to make sure what’s just happened can’t happen. It has. Lesson of history. Don’t chase the best rate from someone you’ve never heard of.
“Majority of IFAs have no plans to use AI in their practices”
I remember sometime in the 90’s, attending a presentation by a successful adviser providing helpful hints to an audience of wannabes, young and old.
