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Moneysavingexpert.com founder echoes fears RDR will cut access to advice

Moneysavingexpert.com founder Martin Lewis has echoed warnings the RDR will reduce access to advice.

Giving evidence to the Treasury select committee this week, Lewis said: “By the nature of what I do, I deal with a wide spread of the public. I worry that if you ask people to pay for financial advice, they will not pay.”

He said there is a lack of understanding of the advice landscape among consumers, adding that some people went to banks and were sold payment protection insurance thinking that the commission-incentivised seller was an adviser.

He said: “I am not the greatest fan of IFAs but I certainly think they are better than tied agents. They are far better at what they do, which to me is protection, pensions and investment advice, than somebody who does not have a clue.

“Tying an IFA’s hands by not allowing commission, in an environment where people would prefer it, seems to be a problem for me.”

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Comments

There are 15 comments at the moment, we would love to hear your opinion too.

  1. “They are far better at what they do …. than somebody who does not have a clue.”

    Gee, thanks Martin!

  2. Great comments Martin

  3. I find Martin’s comment very patronising and insulting, and this man we are to believe to have a credible opinion when he was promoting Crown Currency Exchange who now owes £20 million to the public he supposidly champions…..!?

  4. The answers he gave about who regulates him and who pays him were news to me. He said nobody regulated him because he was a financial journalist and compared his business to the Sunday Times Money section. Except financial journalists are regulated and newspapers I thought sold advertising not links in editorial? Can I pay for a link in a Sunday Times editorial? If he is unregulated and he is paid by companies to sell products and services he recommends through shared links with price comparison websites, then what he is saying is there is no need for any regulation of how financial products are sold.

  5. It is a very sad state of affairs when a prominent select commitee goes to Martin Lewis for Advice Why do they not speak to Noddy and Big Ears who have are as much qualified as he is to talk about such Matters .Martin Lewis is too thick to realise the damage he has done to Financial Service .Some people hang on his every word That is why nobody will trust any IFAS and will have no protection and pensions

  6. I have been told that Martin is a very successful man, made a fortune doing what he believes in, all completely unregulated.

    He is right that an IFA is better than a tied agent for many reasons, primarily due to the choice of whole of market.

    A senior FSA Director told me a bank’s payment protection insurance was ‘better than nothing’ when I was describing the lack of choice with regard to income protection products offered by banks.

    There is a distinct lack of understanding, appreciation and knowledge of what an IFA can do among regulators and politicians alike. They are wearing cloth ears.

  7. Thank you Martin.

    I do not understand the bad remarks from some above, if he is not a great fan of ours well fair enough that is his choice, but he thinks we are the best there is.

    If quality CPD was added instead of qualifications and we started behaving as one and cracked right down collectively on some of our over eager counterparts who think they are gurus and try and self promote themselves for their own benefit then we could proceed a lot better than we are now.

    We then should approach the likes of Martin Lewis and help him understand that different IFAs work in many different areas of society and industry which is why we are not all the same, help him understand the niches within our industry.
    Martin only deals with the general public and many Mr and Mrs Averages unlike many louder IFAs.

  8. I actually believe that Martin Lewis does a superb job for the average consumer, and his assessment of banning commission completely being counter productive to the average person on the street is also fair. However, he has missed a trick in his portrayal of IFA’s roles in the community, effectively suggesting that they are the best of a bad bunch, which unfortunately still leaves a negative undertone. Although you would hope that anyone listening to this would still seek advice from IFA’s in general to make up their own opinion, why does Martin tar the whole industry with the same brush with sweeping statements like he has? I’d like him to furnish us with details on the number of advisers he has assessed in arriving at his opinion, to give some substance to his disregard for this crucial part of the financial advice community.

  9. I have just listened to the committee meeting on which this report is based. Martin Lewis admits that not only that his business is unregulated but he earns commission from links inserted within editorial content and that he manipulates those links to maximise his income.

  10. Why is Martin Lewis considered an “expert” that he is invited to a Treasury Select committee?

  11. Idi Aminwas the self proclaimed King of Scotland… read in to that what you want.
    I have nothing against Martin Lewis, he does fdo a valuable job, but his choice of title does make people rely on him (those currency exchange people for example) and as such, he should take some responsibility ofr his errors on the subject even if only moral rather than legal.
    We all make mistakes and as an adviser we pay for them, whilst it seems “experts” do not, including those non IFAs in the food chain at Keydata including accountants/auditors, solicitors and custodian banks.

  12. I’d just like to clarify something I am a fan of IFAs – don’t read the “I’m not the greatest fan of IFAs remark” out of context.

    It meant just that “I’m not the greatest fan” not “I’m not a fan” – which outrageously another trade publication choose to sub it too.

    In fact I actively support the IFA sector, we’re in teh process of redoing the ‘how to get financial advice’ guide on my site and for the right issues do push people to IFAs.

    My point in saying the “not the greatest fan” phrase was to emphasise that I’m not part of the IFA community so that when talking about RDR and commission it wasn’t a vested interest and not in any way to insult IFAs – in fact I had thought I was defending them.

    Though in 75min of cross examination by 10MPs on your own – you can’t always be word perfect.

    This was also a tiny part of what I was there for – later on if you listen you’ll hear me try and bat away further talk on the RDR trying to say its not really my bag.

    My reason for being there (I’m going to ignore the insulting comments) was primarily to talk about reclaim regulations and the way banks use the systems complexity to avoid paying out (for those saying I’ve killed the PPI market – I have nothing against PPI and am always plain to say its a good product but BANK sold PPI is horrendous).

    For those reading some of the comments (and sadly slurs) above I’d ask you to listen to what I actually said – or better still the corrected transcript when it comes out (as there I get to clarify things that were said in teh moment and didnt quite get my point across.

    Kind regards

    Martin

  13. Martin you only deal with consumers where things have gone wrong and it’s tainted your views of the IFA sector, which is no better or worse than solicitors, accountants or other professionals.

    As with those, you have to find a good adviser and stick with them.
    Most people are happy with the service that their IFA provides and will be left in a difficult position if their IFA is one of the victims of RDR.

  14. In this article we shall be discussing about the various ways in which one can make as much profits as maybe possible and how we can select securities to make investments. Investing in securities can be profitable only if investment is done with proper research

  15. What Martin Lewis really means is “I am genuinely a great fan of IFAs” when speaking to IFAs at the NAPF conference in Liverpool ( http://www.moneymarketing.co.uk/pensions/martin-lewis-advisers-reputationally-damaged-by-rdr-debate/1059815.article ) but not a fan when he thinks they aren’t in the audience. The man’s a total two-faced slimeball.

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