SimplyBiz chairman Ken Davy is calling for all advisers with three years’ exper-ience and an unblemished claims’ record to be included in the professional financial planner advice category proposed in the retail distribution review.
He says that the PFP definition put forward in the RDR is too restrictive and believes that plans for the general financial adviser category should be dropped.
He considers that advisers who have three years’ experience, clean complaints’ records and who operate a customer-agreed remuneration model should be grandfathered into the PFP regime.
The move would mean that IFAs, which hold over 60 per cent of market share and yet feature in only 14 per cent of complaints, would be able to continue serving clients and huge market disruption would be avoided.
Davy, who is on Aifa’s advice taskforce, says the primary advice channel needs to be rethought as he believes it will not even meet the FSA’s own tests for treating customers fairly or advertising that is not misleading.
He also attacks the concept of the primary advice plan, saying: “Primary advice is clearly secondary advice but, on the assumption that such a name would be unacceptable to the FSA as few would want to be associated with it, we could call it either limited, narrow range or restricted advice.”
He suggests dropping the present term of basic advice and relabelling primary advice as basic advice.
Davy says: “If the categories of basic and professional advice are properly structured, one can fairly ask why any resources, time or money should be spent on the general adviser category at all.”