The RDR consultation paper states that the FSA will require providers to validate and monitor adviser charges. It says providers must take account of the impact that adviser charges could have on the performance of products and how this will affect outcomes for consumers.
In its response Aviva says it supports the concept of adviser charging but not the requirement for providers to monitor the level of charges.
It says: “This contradicts the aim of adviser charging of breaking the relationship between provider and advisers regarding payment. Providers are not best placed to police this and it instead should be monitored by the FSA.”
Aviva is also calling for the regulator to drop the ban on provider factoring for regular premium products, saying it should be maintained and subject to standard discount rates across providers.
Aviva says it supports the introduction of QCF Level four as the minimum qualification for advisers and the 2012 transition deadline.
Aviva marketing director David Barral says: “Aviva recognises that access to good financial advice is crucial to the financial wellbeing of millions of people. Consumer access to financial products and services is the biggest and most pressing issue facing our industry and it is crucial that the FSA delivers on its objective of ensuring that advice is easily accessible.”