View more on these topics

Aifa rues lack of FSA research but regulator says it’s listening

Aifa has accused the FSA of failing to conduct proper research before publishing its retail distribution review discussion paper.

Speaking at Positive Solutions’ annual forum in Birmingham last week, director general Chris Cummings slammed the FSA for commissioning further market research on the issue.

He said: “Speculation is fine but I wish they would have looked at the evidence rather than spending money on market research now.”

Cummings also said the industry needs more advisers not fewer if it is to prevent the savings gap turning into a savings chasm and there is too much focus on qualifications in the RDR.

He said: “It has become easier to rack up £1m of debt than put a few thousand into a term insurance policy. We have fallen out of love with the savings culture. It is about time we started to educate the regulator that this is a social debate and not just about exams.”

But FSA spokesman Alan Mason, part of the regulator’s RDR team, urged IFAs to respond to the proposals, stressing the objective was not to reduce the number of advisers or to eradicate commission.

Mason said: “It is not our desire to see the market contract. We really want to see the market grow and extend to reach more consumers. We are not wedded to these proposals, we are listening.”

Recommended

Abbey pilots 100 per cent plus mortgage deal

Abbey has launched a 100 per cent loan to value product with the option of a £25,000 secured loan.A spokesman for the lender says that it is currently only trialing the product with select brokers including London & Country.Abbey says it is reviewing the product on a day to day basis so does not know […]

Sub-prime numbers still add up

Tara Powley reports on research which shows that brokers are wary of some lenders but still have faith in the sub-prime mortgage market

Carby confirmed as new Openwork CEO

Foster Denovo’s founding executive chairman Keith Carby has been appointed as new chief executive of Openwork, replacing Stephen Leaman from October 15. Carby began his financial services career with Hambro Life (later becoming Allied Dunbar) in 1981 where he progressed to sales director and then managing director.From Dunbar, he then co-founded J Rothschild Assurance in […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment