Cummings says IFAP targets its resources on people who have already made up their mind to get financial advice but some of its funding should be redirected.
He says: “IFAP gets £2.7m a year to spend on promoting financial advisers but what does it do with the money? I would like to see a big consumer campaign based on the retail distribution review, telling people how great IFAs are. If you think how much money has been spent by IFAP over the past 10 years, then let’s actually use that money for some good.”
IFAP chief executive David Elms says: “Cummings does not seem to understand the value of what we have been achieving. By putting journalists in touch with IFAs, we generate 6,000 pieces of consumer media coverage per year in which IFAs are quoted as expert commentators.
“We have 62 white-label IFA search sites and we generate 600,000 enquiries from consumers seeking an IFA in their local area. This is cost-effective by anyone’s standards.”