View more on these topics

Disclosure upheaval would aim to clarify adviser classification

A radical overhaul of the disclosure regime is being called for by the FSA, including scrapping post-sale confirmation letters, which it claims would save the IFA sector over £37m.

The FSA makes recommendations in its consultation paper which it claims will “enhance” disclosure and ensure clients know what type of adviser they are dealing with.

It says consumers should be aware of advisers&#39 qualifications and the range of choice in the advice market to make them more likely to shop around.

The FSA has researched new forms of written disclosure and believes advisers should use terms of business letters with a tick-box section at the top showing all the possible options of advisers and which category that they fall into.

It claims that people are confused about how advisers are paid and to tackle this it wants to “unbundle” the cost of advice from the cost of the product.

However, IFAs believe that any cost savings from the move would be countered by the changes they would have to make under the new rules and other regulatory costs.

Sofa director Tudor Taylor says he welcomes clarity on qualifications and disclosure but the term IFA is clear to consumers and anything that changes it will cause problems.

IFA Best Advice partner Paul Banfield says: “Any saving made by not sending out these letters will be eaten up in other ways, like having to set up new administrative procedures.”


IFAs say proposals will add to confusion

IFAs say the proposals to abolish polarisation and introduce multities will only increase consumer confusion and serve to restrict choice.The Bureaux director Ronnie Lymburn says: “This will only confuse consumers as their choice will not easily be understood. This does not make it easy for consumers to understand the varying levels of advice and the […]

Scottish Mutual backs FSA&#39s big issue on with-profits disclosure

The latest FSA with-profits issues paper is pushing at an open door, says Scottish Mutual.The life office says providers already accept there are big problems with consumer understanding and confidence about with-profits products.It says many of the proposals suggested in the FSA paper, Disclosure to Consumers, were originally raised by the ABI several months ago. […]

Govt interference means IFAs are now a dying breed

I have been in the financial services industry for 37 years, mostly as an employed IFA but since January 1996 as a partner in a provincial IFA in Kidderminster. I feel that I can no longer contain my anger and frustration as to how Governments of all political colours have interfered with our business over […]

IFAs urged to emphasise the benefits of advice to women

Men are more likely to seek financial advice than women so IFAs should put greater emphasis on targeting women, according to a new survey from Sun Bank.It found that men are 50 per cent more likely to visit an IFA when sorting out their finances whereas women are more likely to go straight to their […]

Image courtesy of Stuart Miles at

Pension freedom: wish you were here?

Out there lies a warm ocean of desert islands, sun, sand and palm trees, where individuals can choose how and when to tax-efficiently access their pension fund and realise the retirement dreams they have worked so hard for.


News and expert analysis straight to your inbox

Sign up


    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