View more on these topics

First adviser reaction to RDR

Anand Associates managing director Bhupinder Anand says: “What is the logic? The FSA is admittedly going to now restrict access to financial services for consumers. If it’s correct that in order to call yourself a professional adviser you can only charge fees I resent that.

“I am a fee-based adviser but many customers choose to pay commission and I don’t think the way I’m remunerated as anything to do with whether I can be called a professional or not. My qualifications, my relationships with my clients, my professionalism and my ethics are what make me a professional.

“If you look at the FSA’s four statutory objectives, 50 per cent of them will fail under this new proposal. For the FSA to deliberately restrict access to consumers to quality advice is a scandal. They’ve already done it with depolarisation and now they’re admitting they’re doing it so maybe we should applaud them for coming clean.”

Highclere Financial Services partner Alan Lakey says: “It’s crazy. Every single last thing the FSA has introduced in the last 10 years to protect consumers has backfired at a terrible cost.

“This is a suggestion that at the outset the FSA are saying this will fail to make advice more accessible. It beggars belief – this is wholesale culling. It will be a downward spiral.

“The first point is less consumers will be able to afford advice on the products they need, the second point is thousands of advisers will go out of business and the third is less consumers will be able to buy the products they want because there will be less advisers to provide them. And all this will benefit the bancassuers who will say we don’t charge fees or charge commission then they will sell consumers inadequate products.”

New Life Financial Planning principal John Burnard says: “As a sole trader, I operate on both a fees and commission basis. I’m quite happy to go down the fee route, but customers prefer commission.

“I mainly deal with middle and lower income clients who often haven’t got the resources to pay an upfront fee. I am happy to take fee, but it’s not what the majority of my customers would choose.”

Click here to read all RDR stories

Click here for the straw poll

Recommended

IFA welcomes expanded definition of fees

The retention of fund-based commission in the possible models of adviser remuneration is to be welcomed as many advisers struggle to move clients onto a fee paying basis, says Arch Financial Planning managing director Arthur Childs.

FSA warns IFAs against bulk transfer onto platforms

The FSA has warned IFAs migrating their clients on to platforms that they must be careful because some client assets may be moved inappropriately.Firms may act “inappropriately” by bringing existing clients and legacy assets onto a platform against the needs of individual customers, according to fears raised by the FSA. The regulator urges firms to […]

Wagstaff trades New Star for Gartmore

New Star retail sales and marketing managing director Phil Wagstaff has resigned from the company to take up the role of global head of distribution at Gartmore.Wagstaff will be responsible for the distribution of all retail, institutional and alternative products in the UK, Europe, Japan and the US and will also assume responsibility for the […]

employee-focus-group

Five ways to make your employee focus group session a success

by Debra Corey, group reward director  You just planned and booked what you thought was the perfect vacation for you and your family. You call everyone together to share the great news and instead of receiving sounds of glee and delight, you receive groans and complaints.Your youngest says: “I hate beaches, didn’t you know that?” (You think to […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com