Advisers have slammed comments made by Liberal Democrat Treasury spokesman Lord Newby, who claimed that traditional IFAs are a “doomed species”.
Money Marketing asked Newby, who was speaking at a fringe event at the Liberal Democrat conference in Liverpool on Tuesday, what role IFAs will have in the future of financial services.
He said: “The traditional model of the IFA looks to me like a doomed species. I think there will be a drift away from old fashioned financial advice.
“The regulatory requirements on IFAs are so great, the cost of giving advice is so great and I cannot image why anyone would want to do it. It just looks to me really, really hard.”
Newby said his children’s generation would seek advice almost exclusively online.
He said: “I do not think they would want to go through the appalling business of laying out all their details and taking an hour to go through everything the way we did when we were buying financial services products.”
Clancy’s Financial Planning financial planner Jim Clancy says: “I am just aghast by the whole ignorance of Lord Newby. Advisers are there not to sell products but to give advice. Has Newby been to a financial adviser recently? I would like him to come down to my office so I can show him exactly what an IFA does.”
Baronworth Investment Services director Colin Jackson says: “Newby is utterly wrong to say that advice will all go online, you simply cannot offer advice purely online because it is a two-way conversation. All you can offer online is guidance and education.”
Stevens Financial Services director Michelle Stevens adds: “I bet Lord Newby does not make his investment decisions without some advice.”