Our views
- Creating a new market structure
We feel that this framework recognising and aligning to different client's needs offering different types of services as a positive step forward. We also think that the structure recognises and promotes the benefit of independent financial advice. This structure allows for growth of other types of services which include lower level recommendations which may meet less complex financial needs of customers.
We also feel that 'adviser' should have a clear regulatory meaning and be linked to key customer benefits such as 'adviser charging' and higher professional qualifications.
Similarly, we agree that 'Independent' advice should operate on a 'whole of market' basis (linked to the FSA's term 'relevant markets'). We agree the term 'independence' should refer to the service being offered and not the status of the adviser, allowing advisers to offer both Independent and Restricted advice. - Adviser Charging
We see this as another important step forward in creating an industry that consumers will feel more confident engaging with.
However, we remain concerned that the proposals are insufficient to broaden access to advice for consumers and, at a time when we need more rather than less advice, the term 'Restricted Advice' may send out a negative and unintended message to consumers.
The provider community needs to get behind IFAs at this time to support them through the changes, particularly around remuneration. - Professional Standards
We support the vast majority of proposals that have been set out for improving professional standards in the industry. While we support the proposals for a Professional Standards Board we believe that it is important that the FSA look at the overall supervisory framework for the industry to avoid duplication and ensure that costs for the regulation of the industry are kept to a minimum.
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