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Flight attacks Labour&#39s &#39garbage&#39 attitude to IFAs

The Government must stop attacking IFAs for reasons of political expedience and publicly recognise that they provide the majority of financial advice in the UK, says Conservative shadow paymaster general Howard Flight.

In a harsh criticism of what he calls the Government&#39s “garbage” attitude towards IFAs, Flight says it is easier for the Treasury to bash IFAs than appreciate the role they play.

Flight says the Sandler report is the latest example of this with his comments about IFAs&#39 over-reliance on commission, their lack of investment knowledge and selling too many active managed funds.

However, Flight says he agree with Sandler&#39s ideas for IFA remuneration. The Tories had publicly disagreed with the FSA&#39s defined payment proposal, saying it would significantly reduce the number of IFAs.

Flight also attacks the 1 per cent price cap proposed for the new “stakeholder&#39 range of products, claiming the charge does not allow providers to effectively distribute them. He cites stakeholder pensions&#39 failure to meet its target market to support his argument.

Flight told Money Marketing: “All this knocking of IFAs is utter garbage. They have improved dramatically the added value service they provide and in fact are the source of most of the financial advice given in the UK.

“It is sensible for clients of IFAs to agree the remuneration upfront and then just get on with it. I do not think these new products are going to achieve their objective of bridging the savings gap.”

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