PFS: 'Independence is not about products'
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The Personal Finance Society has criticised the regulator for focusing its definition of independence on products rather than client disclosure.
The FSA says a firm claiming to offer independent advice must provide unbiased and unrestricted advice based on a comprehensive and fair analysis of the relevant market. Independent advisers must consider a broad range of retail investment products, including structured products and unregulated collective investment schemes.
Speaking at the PFS Tomorrow’s Client conference in London last week, PFS chief executive Fay Goddard said: “In redefining the requirements for independence, the FSA has set the bar very high. To me, independence is not about products. It should never have been about products. It is about duty of care to your client and clients knowing about contractual arrangements or conflicts of interest that prevent advisers from acting in their best interests. That is the sort of definition I would like to see around independence.”
Aifa director general Stephen Gay said the future importance attached to the independent label will depend on how clients view its value.
He said some firms sell their proposition on the service they offer rather than on the independent label.
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