The Association of British Insurers has welcomed the proposals set out in the FSA’s Retail Distribution Review discussion paper, particularly reducing the role of commission.
ABI director general Stephen Haddrill says the association was hoping for proposals that would strengthen consumer confidence in savings.
He says: “The ABI has recommended that the role of commission be reduced and that the training and qualifications of advisers should be strengthened.
“The FSA’s focus on improving professionalism and on making it clearer to customers what they can expect from their advisers is the right one and we are encouraged by the FSA’s willingness to review whether regulation is producing unintended consequences, and therefore discouraging people from saving.
According to Haddrill today’s proposals now need careful consideration to ensure they are as straightforward and simple as possible and will lead to a system and to advice that is clear and trusted by consumers.