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Adviser Census: What do you think of Basic Advice Plus?

Money Marketing has teamed up with NMG’s Financial Adviser Census, one of the largest regular surveys of adviser attitudes and opinions, to gauge adviser sentiment on some of the big stories we have been reporting on.

Last year, Money Marketing reported on a “basic advice plus” regime allowing commission payments and requiring QCF Level 3 qualifications that was proposed to regulators by an industry group at the Gleneagles industry conference.

It was conceived by a group led by industry consultant Peter Williams and including the Association of British Insurers and Association of Mortgage Intermediaries.

Under the proposal, QCF Level 3 advisers could offer basic protection products, cash and equity Isas, stakeholder pensions and advice on purchasing an annuity subject to the size of the pension fund. Advisers would be paid by commission and products would be approved by the regulator.

The research shows a majority of advisers did not have a strong feeling about the proposal, with nearly a fifth reacting positively and double that number reacting negatively. Nearly half of advisers agree with the retention of commission while only a fifth agreed with the Level 3 qualification proposal.

Less than 20 per cent would be likely to offer such a service. Among those who would offer the service, the majority say less than half of clients would be suitable. Advisers were equally divided about whether it was too late to introduce the service, given the introduction of the RDR.

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There are 2 comments at the moment, we would love to hear your opinion too.

  1. Captain Codpiece 4th May 2013 at 9:50 pm

    (Lifetime) annuities are by no means the only option that should be considered when vesting a pension fund (or amalgamating several). And just what type of lifetime annuity?

    Advice on investing via Equity ISA’s requires full ATR & CFL assessment.

    And, except in terms of charges, stakeholder pensions are no different from any other pension plan. They’re governed by the same overly-complicated framework of rules and regulations.

    So Basic Advice Plus is basically a crock, dreamed up by armchair theorists (tossers) who have no idea about what is actually involved in giving competent and thorough advice on pensions and investments. Other than by cutting corners, you cannot simplify the unsimplifiable.

  2. Would advising a client via basic advice plus lower the potential liability of the adviser?

    Thought not…………………………

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