IFP moots NHS-style approach to advice

The Institute of Financial Planning has suggested that simplified advice could be delivered through a NHS-style framework where the Government pays or contributes to the costs of mass market advice.

IFP chief executive Nick Cann (pictured) put forward the idea in a webcast broadcast yesterday on simplified advice.

He believes there is mileage in a simplified advice solution which would see the Government pay advisers for providing straightforward advice. He says clients with more complex advice needs would then be more happy to pay for financial advice as they are receiving a specialist service.

Cann says: “We know in the financial planning world that clients will pay for advice, and if they want a particular type of financial planning advice they will happily pay the sorts of fees that are needed.

“But is there some scope to look at more Government support for an NHS-type service where advisers and firms would get paid for delivering particular types of service to clients? The whole notion appeals to me somewhat and I think it is worthy of further exploration.”

In March FSA chief executive Hector Sants revealed plans to consult on guidance for simplified advice, and admitted that simplified advice will be crucial post RDR. The paper is expected this summer.