Aifa chairman Lord Hunt of the Wirral has demanded the industry stop its loose talk of the 1 per cent world, saying it is little more than a slogan.
He also warned that changes to polarisation could see the industry revert to sales-based and not advice-based behaviour and provoke a scramble for distribution.
Introducing Ron Sandler, he described him as “a man who listens” and said fears that he would be a hanging judge were unfounded. Hunt also praised IFAs for starting the transition from up-front indemnity to trail commission.
Lord Hunt also said it was inevitable to mention the “p” word of polarisation and made a plea for reviews of the regime to consider the “consequence of disrupting the market for advice”.
He said: “Head away from loose talk of the 1 per cent world which is little more than a slogan, and replace it with a more realistic approach based on what it costs to pay for advice and products which reflects their cost and value, not some arbitrary figure.
“Polarisation is understood by consumers so do not throw the whole lot back into the melting pot. The focus must not move from getting advice to those who need it to a scramble for distribution. The many positive developments in the marketplace should not be lost in a reversion to sales-based, not advice based, behaviour.”