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&#39Proposals risk being idealistic&#39 – Selestia

Sandler&#39s focus on asset all-ocation and transparency has been welcomed by Sel-estia but it warns that other aspects of the recommendations do not go far enough or risk being idealistic.

Managing director Brett Williams says: “The assertion that simplifying products will prevent them being missold perpetuates rather than resolves much that is wrong with the industry and its obsession with product when what really matters is the underlying investment.&#39

Selestia also fears that establishing a second tier of unregulated advice may herald a return to the bad old days of the pre-regulated world, with anyone from taxi drivers to car mechanics being able to give financial advice.

The need to provide transparent investment solutions rather than product solutions is key, says Selestia, which believes that as long as products are simple, what clients pay for advice should be between them and the adviser.

On with-profits, Selestia is concerned that the issue has been fudged and had hoped the report would go further by banning them in their current form.

It says: “The fact that Sandler has backed away from taking a strong line on this is very disappointing.”

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