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Aviva shuns simple advice for guidance service

Aviva says it has no plans to offer simplified advice and is instead developing a non-advised financial guidance service for customers with limited budgets after the RDR.

In May, Aviva published a report, Rethinking retirement in the UK, which urged the FSA to press ahead with the development of simplified advice.

But, speaking to Money Marketing, Aviva UK Life chief executive David Barral says: “I am not a fan of the concept of simplified advice. I think you either get advice or you do not. Aviva is not waiting on any further clarification from anyone on simplified advice.

“There is a proportion of customers who will be unwilling to pay for full-fat advice but still need some kind of help and guidance and we think there is an opportunity there.”

Speaking at an Age UK event in London last week, Financial Conduct Authority chief executive designate Martin Wheatley said he is hoping simple products and simplified advice will bridge the potential advice gap for people with small pension pots.

Annuity Direct business development director Katherine Oxenham says: “You either get advice or you do not and I am not clear how you define what is simple and what is complex. We are looking at advised and non-advised because these two concepts are easy to define.”

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