Did someone put a stimulant in their tea? Or was it a question of clearing the decks before a long Christmas break?
Either way, Britain’s often dozy regulators are rippling their muscles. The telecoms regulator turned its fire on BT-owned EE.
As a connoisseur of BT’s unscrupulous and often indecipherable pricing policy, I am not in the least bit surprised.
The often lacklustre Financial Conduct Authority is taking aim at the way investment platforms – Hargreaves Lansdown is among the biggest sinners – have exploited the cash balances of loyal clients to ramp up their own profits by confiscating much of the benefit of higher interest rate margins.
Unilever, already in the dock over alleged ‘greedflation’, finds itself being probed by the Competition and Markets Authority (CMA) for overstating claims about its green credentials.
The often lacklustre Financial Conduct Authority is taking aim at the way investment platforms have exploited the cash balances of loyal clients to ramp up their own profits
As splendid as it is to see this trio of regulators wagging their fingers, one would like to see much more from those who have delivered so poorly for the public.
The Civil Aviation Authority (CAA) stands limply by as overseas owners of Heathrow (soon to include Saudi Arabia) ramp up prices for travellers and airlines.
Then there is Ofgem, which in the name of competition allowed the energy market to become the Wild West, with every escapee from the great financial crisis reappearing as energy suppliers.
The taxpayer was left with the bills as they collapsed like ninepins. As for the water regulator Ofwat there is one word to describe its performance: sewage.
Dame Melanie Dawes at Ofcom has taken to the airwaves to caution mobile operators that it is not fair to impose inflation increase on customers mid-contract.
Networks have been told they must spell out the increases prominently on contracts, allowing users to exercise the right to switch mid-stream.
It isn’t going to be Ofcom’s decision. But one suspects Sarah Cardell, her opposite number at the CMA, will not be amused by a cartel-like lack of transparency.
It is unlikely to advance Vodafone’s plans to merge with Hutchison-owned rival Three.
While on the topic of the CMA, the decision to investigate Unilever’s green washing likely will bring a wry smile to the face of Mauritius-based stock picker Terry Smith.
He often skewered Unilever for its brands ‘with a purpose’ and wokery.
The CMA contends that some of the language used by Unilever may ‘mislead’ consumers on environmental impact. Green leaves on packaging doesn’t make the product ecology friendly.
The biggest share price movement resulting from the regulatory awakening was felt by broker Hargreaves Lansdown, which tumbled 10 per cent when it was revealed it is being stalked by the FCA.
In the last year, the platform’s pre-tax profits surged 50 per cent to £402.7million.
This miracle was achieved by raiding cash in customer accounts, placing it on deposit with banks, and pocketing the difference between the interest return to clients and that it achieved in the money markets.
Nice work for HL and its executives, boosting bonus entitlements, but unfair to clients watching hard-earned money vanish down the inflation plughole.
Oil rush
Finally, after much wrangling at the COP28 climate summit, the world’s 50 top fossil fuel firms pledged to slash methane and carbon emissions to zero by 2030 and 2050 respectively.
This is a jolly encouraging outcome until one looks at what is actually happening in West Texas.
Consultants Wood Mackenzie report big oil mergers and acquisitions in the Permian Basin, home to fracking, reached a record of $100billion this year as oil majors, led by Exxon Mobile and Chevron, acquire ever more fossil fuel assets.
Warren Buffett-backed Occidental is the latest acquirer buying up driller Crown Rock for a cool $12billion. Retreat from fossil fuels? Hooey.
Chemistry set
A report from broker Jefferies to conjure with: ‘An early Christmas present for DOMC and RDC.
The introduction of an eGK solution means the BMG-related institution has confirmed specifications for an online version with BSI and BfDI. With this decision online p have access to Rx TAM… ’
One knows there is a love of acronyms in finance but the gobbledegook in this note borders on the absurd.
For the uninitiated, it means German pharmacies DocMorris and Redcare are going online.
Of course…
