The FSA has accepted it is having problems designing a workable menu system that covers three sets of conduct of business rules and says it is not too late for IFAs to influence the debate.
Managing director David Kenmir told a gathering of IFAs he wants to find a way around the complexity of its current plans which would see a customer wanting an Isa mortgage with protection alongside receiving three different sets of menu papers.
IFA delegates blasted the proposals as unwieldy and likely to scare off customers altogether by deluging them with paperwork at the very first meeting.
Under the FSA's current proposals, an adviser would have to give an investment menu before talking about an Isa mortgage, even if the customer eventually went for a repayment option. Separate mortgage and general insurance menus would also be required. Kenmir said the FSA was open to all suggestions from IFAs on how the system might work but the menu itself would not be dropped.
Master Adviser managing director Doug Brodie said: “This is like telling the client at the first meeting, 'I am going to have to charge you a lot but I can't say how much that is going to be because that would presuppose that I am going to have to sell you something.'”