View more on these topics

Does the FSA believe that software-driven advice is perfect?

The FSA is suggesting that perfect advice is software-driven rather than faceto face through an IFA.

Buried in the back of a companion document to the stakeholder sales process consultation paper CP04/11, the FSA says it has identified the benchmark for perfect advice by configuring a web-based financial planning tool.

IFAs are in uproar at the idea that perfect advice comes without an adviser.

Syndaxi director Robert Reid questions how a system is able to capture subjective predictions of inflation and markets that IFAs are called on to perform when advising clients.

But the FSA disagrees it is implying that best advice comes from software systems. Spokes-woman Jackie Blyth says the benchmark was only valid within the confines of research into consumer stakeholder purchases.

Financial Technology Research Centre director Ian McKenna says: “The FSA has quite clearly defined what it thinks are the parameters for perfect advice. They are not just talking about their consumer research.”

Reid says: “Are they saying the person who designs the advice system is the font of all knowledge? At the end of the day, advice is subjective. It is a little hypocritical that the regulator is pulling out of system-generated projection rates and at the same time they are calling a web-based financial tool &#39perfect advice&#39.”

Blyth says: “We are not saying that software can replace an adviser.”


FSA&#39s hotline bids to blow whistle on misleading ads

A hotline has been set up by the FSA for the public and company staff to report in strict confidence on misleading advertisements for financial products. It is asking the industry to inform on firms which break the rules by not being clear about the risks as well as the benefits of an investment and […]

Skandia adding Sipp to build up its wrap

Skandia is planning to add a self-invested personal pension product to its pension range as part of its wrap development. The company says it needs a Sipp offering because of the opportunities for IFAs which are presented by the widening of investment rules after A-Day and the benefits of consolidating pension investments. ABI figures show […]

FSA&#39s half-baked PI recipe for endowments

I recently renewed my professional indemnity insurance and submitted the policy schedule to the FSA. The FSA noticed that my excess increased to £10,000 for endowment claims and notified me that I now need an extra £7,000 in my bank just in case I get a complaint. The alternative to this was to declare that […]

FS firms boost staff numbers at fastest rate for 15 years

Financial services firms boosted staff numbers at the fastest rate for 15 years between March and June, according to CBI and PricewaterhouseCoopers. Their latest quarterly survey reveals 5 per cent of companies reducedemployment over the last three months but 41 per cent took staff on. The balance &#45 36 per cent – is the fastest […]


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