IFP moots NHS-style approach to advice
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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.
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Readers' comments (3)
Phil Castle | 4 Aug 2011 9:42 am
The problem is that too often "it is worthy of further exploration" becomes a rail roading without the investigation taking place first.
I agere with Nick Cann, it IS worthy of further exploration, but no more than that....
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Anonymous | 4 Aug 2011 10:02 am
Truly, it is a fortunate man who experiences so little government interference in his business and personal affairs that he decides to actively seek more of it.
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steven Farrall | 6 Aug 2011 5:13 pm
Nick old son, you are off your trolley.
I don't doubt that the FSA would love the idea as it completes their Fabianistic aim of nationalisation by regulation. But do you seriously think that quality advisers are going to spend time advising those that would access such a service? The opportunity cost to them would be huge. So the advisers you will get will be clueless functionaries with zero interest in the outcomes for clients, produce capture would explode as it has in the failed NHS.
Give me strength. The economic ignorance exhibited by our professional leadership is breathtaking and disgraceful.
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