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Grandfathering plan is rejected

IFAs have criticised calls from SimplyBiz chairman Ken Davy for advisers with three years’ experience to be grandfathered into the professional financial planner category.

Davy says grandfathering should be available to individuals who have been advising for at least three years with a good complaint record and who opt to work under the customer-agreed remuneration model.

But in an informal vote at Osney Media’s financial services distribution summit in London last week, delegates, including IFAs, network chiefs and product providers, voted unanimously aga-inst his proposals.

Churchouse Financial Planning director Keith Churchouse said: “You cannot call yourself a solicitor or chartered surveyor until you have done your exams. Why should advisers be any different? I think that grandfathering is an appalling idea.”

Thinc Group director and chair of the RDR professionalism and reputation working group Roderic Rennison said: “The public would regard that as a cop-out. I do not believe in grandfathering in the sense that Davy has set it out.”

Davy said: “Such a structure would enable us to dispense with the general financial adviser category while delivering a robust and increasingly professional top tier of professional financial planners.”

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