The AITC has given a tentative welcome to the FSA's consultation on polarisation, applauding the paper's radical nature.
Director-general Daniel Godfrey says he was particularly pleased to see the unbundling of the cost of advice from product charges on the paper's agenda.
Previously, the AITC has been a staunch supporter of the current polarisation regime. But Godfrey says that a combination of depolarisation and a restructure of the way advice is paid for, may be beneficial for the consumer.
He says “This unbundling of the cost of advice from the cost of the product, as expressed in the AITCs response to the Sandler review, will lead to improved standards of advice. Such a separation would mean that investors would be able to buy direct without having to pay for advice that they do not want and which they have not received. This would be a vital step in improving standards of advice as only those advisers who could demonstrate the value of their advice would prosper.”