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Bestinvest calls for Bowe to ‘crack on’ with RDR

Bestinvest is urging Amanda Bowe to press on with her plans for the retail distribution review, saying long-term problems with commission bias have necessitated the RDR.

Compliance director Jonathan Purle says the opportunity for reform should not get drowned out by “the inevitable din of old men clinging to their commission cheques and worthless Financial Planning Certificates”.

Purle says: “The point is that there are clearly two broad ends of the spectrum when it comes to financial advice and financial planning. There is a professional end marked out with such tendencies as higher-level professional qualifications, fees and recurring income or trail, ongoing servicing, asset-allocation reviews and planning updates.

He says there is a sales end, often marked out by a focus on finding product sales, initial commission, FPC – perhaps supplemented by little more than flimsy in-house testing, sales targets – with impressive sales conventions and possible self-employed status.

Purle says: “Often taking large amounts of commission on relatively simple products that could be bought online, occasionally taking large amounts of commission selling products they shouldn’t be allowed within a million miles of.

“Yesterday’s debate between Andrew Fisher and Nick Bamford underlines my point about these broad camps. I doubt either would appreciate my saying it, but they are basically in the same camp arguing about the details. Both believe in high-levels of professionalism underpinned by higher-level qualifications, both believe in ongoing servicing of clients, and both are certainly against the old-style life company-life salesman model marked out by initial commission and ‘replacement business’.

“My advice to Amanda Bowe is to ignore all the noise from the old life assurance types. Reform is essential for financial services. Clients need to be confident they are dealing with professionals when taking planning advice or with investment-savy advisers when reviewing fund choices. And why shouldn’t they avoid the costs of unnecessary and often poor quality advice when buying what ought to be straightforward products.”


Primary advice is ‘proxy’

Sesame chief executive Patrick Gale criticises the plan for primary advice as a “cheap proxy” for independent advice and predicts the firm’s advisers will become general financial advisers or professional planners.He warns that the public may not realise they are getting limited advice. Gale says: “We believe many consumers would be significantly better off taking […]

Tory Davies slates Cameron as he defects to Labour party

Conservative MP Quentin Davies has defected to the Labour Party, publicly denouncing Tory leader David Cameron calling him superficial, unreliable and lacking in any clear convictions.The MP for Grantham and Stamford made his decision public in a letter to Cameron with whom he has long been at odds, according to BBC reports.Davies’ letter reportedly says: […]

Friends recruiting for wrap

Friends Provident has started an Edinburgh-focused recruitment drive to build the investment administration team underpinning its wrap.F&C’s George Street offices will house the admin centre, partly chosen to tap into the large population of suitably skilled people that work at other existing wraps based in Edinburgh.Friends head of wealth management marketing Christine Foyster says: “There […]

Parental leave and pensions

Fiona Hanrahan  – Senior Product Insight and Technical Support Analyst We are often asked how parental leave impacts workplace pension schemes in terms of funding in general, auto enrolment and salary exchange. This article will explain each of these. How does parental leave impact the funding of workplace pension schemes? A member of a defined […]


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