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ABI says simplified model is unworkable

The Association of British Insurers says the FSA has rendered the simplified advice model unworkable and risks further widening the advice gap.

The FSA published its final guidance on simplified advice last week, which says simplified advice must meet the same requirements as full advice.

ABI director of financial conduct regulation Maggie Craig says: “Simplified advice was an industry effort to find a solution for consumers to afford advice after 2012, so we are disappointed by the guidance, which effectively makes the model unlikely to work in practice.”

In the final guidance, the FSA says it is not convinced consumers who want and need advice from next year will not be able to access it as those who cannot afford to pay for advice up front can pay over time through the product.

Zurich UK Life principal of government and industry affairs Matthew Connell says: “The FSA has gone some way in facilitating automated simplified advice services in the workplace but there was more it could have done to make it easier for firms to make face-to-face recommendations where somebody may not have the relevant qualifications but is working towards them.


Top 10 CPD myths

Julie Pardy, retail sector director at Corporate Training Partnerships, says some urban myths have grown up over what does and what does not count as continuing professional development and here she sets the record straight and offers 10 guidelines to follow for effective CPD

Another senior departure at Aviva Investors

Aviva Investors global head of products Jeremy Soutter is the latest big name to leave the firm following a restructure of its global workforce. Soutter joined Aviva in 1999, he was previously technical director at Henderson from 1990 to 1997. His departure follows that of Aviva Investors chief executive of the UK funds business John […]


Forget global, go local

Businesses benefit from forging personal relationships at a local level, says Peter Craddock, group operations director of Perspective Financial Group


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