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Hewitt tells IFAs they need a new attitude

Treasury economic secretary Patricia Hewitt has told IFAs they must have &#34a whole new attitude&#34 to regain the confidence of the public in the wake of the pensions misselling scandal.


She says the investment industry has for too long done business with little regard for the long-term needs of its customers.


Hewitt, writing in the Life Insurance Association&#39s Prospect maganzine out later this month, points to pensions misselling as a classic example of the outcomes of this type of business practice.


The minister is calling for IFAs to look to built longer-term relationships with clients rather than chasing &#34a quick profit&#34.


She acknowledges IFAs are under pressure both financially and logistically, with profits and commissions hit by products such as Cat-market Isas


But the minister re-iterates the Government&#39s commitment to independent advice.


Hewitt believes Labour&#39s policy to educate consumers will lead to educated and informed consumers that will make better choices. She believes persistency rates will rise and this will benefit IFAs in the long term.


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