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‘Don’t devalue worth of advice’

FSA managing director David Kenmir says IFAs who tell consumers that advice is free are damaging the industry because it makes their role worthless. He wants firms, no matter what route they choose, to be up front with their charging and market the cost of their specialist advice.

Kenmir admits that many small IFAs seem uncertain about which path to take in depolarisation and says some are asking for suggestions from the FSA. The regulator will endeavour to make information available to intermediaries but is not in a position to tell firms which advice model would benefit their business, says Kenmir.

He rejects claims that the FSA is being tough on advisers and says that any implication of from the business plan is just a matter of interpretation.

Kenmir says: “We are in the business of helping people. If that was the interpretation that was taken from it, then that is about individual perception. IFAs have to make its clear that there is value to their advice and market that value. It is harmful to say advice is free.”


No claim bonus

I think someone somewhere once said in regard to the investment universe that past performance was no guarantee for the future. But when it comes to protection claims, in particular critical-illness claims, a life office’s performance of paying claims should be taken into account when recommending to a client, should it not?Early guideline documentation from the FSA suggested that both financial strength and claim history should be considered when giving protection advice.

Purely Mortgages wants FSA to crack down on mortgage advertising

Purely Mortgages applauds the FSA crack down on illegal mortgage brokers but calls for a tougher stance on marketing.Purely Mortgages chief executive Mark Chilton says too much of the FSA’s proposed crack down is reliant on whistleblowers to expose bad practice. In its statement the FSA says that in identifying unauthorised brokers, it will focus […]

India budget: BJP focuses on growth

By Kunal Desai, Head of Indian Equities

With markets kept open on Saturday, finance minister Arun Jaitley delivered a promising budget focused on growth and decentralisation. While many complained about a six-day working week, there was much to be pleased about and the markets rallied in the afternoon to finish in the green.


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