Positive Solutions outgoing executive chairman David Harrison has slammed the FSA, accusing it of asking loaded questions in the retail distribution review.
At Positive Solutions’ annual partner forum in Birmingham last week, Harrison also hit out at the Chartered Insurance Institute.
He said: “It is no good asking members of professional societies if they think professionalism is a good idea. If you ask a non-saver why they do not save, I bet they do not say it was because their IFA was not in the CII.”
As a parting shot at the industry, Harrison, who is taking a non-executive role at PosSol to focus on technology firm True Potential, said the FSA had a predetermined outcome during the RDR discussion period.
Harrison said: “There are essentially two concepts in business – you analyse the problem before you think of solutions and always play to your strengths. Why pose the rhetorical question asking whether or not the model is broken?”
Harrison said that the problem was simply that not enough people were saving and he said that has been the situation since the demise of direct salesforces.
He told the forum: “It has been the case since the man from the Pru stopped coming round to make you put your money in – it was embarrassing if you did not have enough money for the insurance man.”
Harrison believes the FSA wants the right outcome for the RDR but should have researched before the review to discover the problem by asking people why they were not saving before concluding that IFAs were to blame.
He added: “The problem that the Government has is that new prospects will not pay fees.’