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Aegon warns of reduced access to advice under the RDR

Aegon is calling on the FSA to make wider access to financial advice its top priority under the RDR and further develop the simplified and basic advice channels.

Aegon says access to advice could be severely impacted if the RDR proposals are implemented in their current form.

In its response to the RDR consultation paper, Aegon says the FSA should set up work streams, with industry representation, to consider how best to define simplified advice processes, modernise basic advice and develop more flexible advice models.

It also wants the FSA to reconsider qualification standards for simplified advisers to determine where QCF level three might be sufficient.

Thirdly, Aegon says the FSA should overturn the proposed ban on provider factoring and work with the industry to develop standardised factoring terms that avoid consumer bias without raising OFT concerns.

Head of business regulation Steven Cameron says: “There are many positives in the RDR proposals which will benefit the industry. However the common theme to emerge from published responses to the latest consultation paper is a widespread concern that access to advice will be the main loser.

“The proposed ban on provider factoring is particularly damaging for millions of modest regular savers who will just not pay upfront advice costs. There are huge benefits for all concerned from FSA and industry working together to create a sufficient degree of standardisation of factoring terms to avoid provider bias without raising OFT concerns. Let’s make sure the RDR legacy is access for all, not access denied.”

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