View more on these topics

CII says tell public difference between simplified and restricted

The Chartered Insurance Institute is calling on the FSA and the Money Advice Service to proactively communicate the differences between simplified and restricted advice to consumers.

In response to the FSA’s simplified advice guidance consultation, CII director of policy and public affairs David Thomson says the two bodies need to educate consumers about the RDR.

Thomson says: “The focus is now on the FSA and the MAS to ramp up their preparation for the RDR and explain the benefits to consumers. They particularly need to do that over simplified advice because it is not clear and the average consumer will get very confused about what is restricted, simplified and basic advice. It is all very well for advisers to sweat blood to get qualifications and everything else but the FSA needs to give support to that final hurdle.”

Thomson also says the paper has not touched on other regulatory initiatives which overlap with simplified advice.

He says: “The simplified advice paper does not mention all the other changes coming down the track such as simple products and product regulation.”

Paladin Financial Services managing director Tim Purdon says consumers tend not to understand the different levels of advice. He says: “It is the FSA’s responsibility to have a clearly understood structure so consumers will understand what sort of advice they are getting.”


News and expert analysis straight to your inbox

Sign up


There are 3 comments at the moment, we would love to hear your opinion too.

  1. The FSA and MAS will not only need to explain the difference between simplified and restricted advice, but also between Independant. They will also need to explain that “resticted” does not necessarily mean tide and that the Money Advice Service does NOT provide regulated advice, it is just “general guidance/information”.
    If an IFA is confused with what I have written above, god help the consumer….

  2. The only reason we’d be confused if due to your bad grammar….

  3. For those worried IFA’s

    MAS already refers customers looking for more than generic advice to IFA’s – Most customers seen are those with debt and on benefits so I don’t see why IFA’s are worried. MAS is not against IFA’s after all it pays their wages!!

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm