The FSA is still committed to producing a practical solution for simplified advice, according to Ernst & Young director Malcolm Kerr.
At the Tenet conference last week, Kerr said although the regulator is struggling to find a workable simplified model, it is still determined to come up with a solution.
The FSA published its guidance consultation on simplified advice in September. It said the advice would have to comply with adviser-charging rules after the RDR is introduced and advisers offering a personal recommendation would have to be qualified to QCF level four.
Kerr said: “The FSA is struggling to get the simplified advice concept out into the marketplace but, having spoken to the regulator, it is still determined to try and make it work.”
Institute of Financial Planning chief executive Nick Cann says: “The problem is that we are trying to look for a solution within the current regulation which makes adviser liability too high for simplified advice to be given.”