Aifa believes a simplified sales process should only be allowed if firms are banned from using the word advice.
The Association of British Insurers and Personal Finance Society have proposed allowing a simplified product stream under the RDR with a limited range of restricted products. Under the proposals, those working in the simplified stream would be required to have QCF level three.
ABI spokesman Jon French says: “Simplified advice will not be the same as full financial advice but, legally, it is still advice.”
Aifa director general Chris Cummings says: “Our view is if it has advice in the title it has to be of the same standard. I am saddened the ABI is taking this approach, it speaks a lot of an organisation looking to sell products rather than one that is looking to put consumer interests first.”
Chartered Insurance Institute head of PR David Ross says the PFS agrees the simplified stream should not be branded advice. PFS chief executive Fay Goddard says: “We are committed to a step-change in professional standards that requires all advisers, independent or restricted, to attain the same level of qualification.”