Treasury financial secretary Mark Hoban has reaffirmed his commitment to the RDR, saying transparency and consumer confidence in advisers’ knowledge will be bolstered by the changes.
In Monday’s Parliamentary debate, Hoban said he is “strongly committed” to transparency in financial services and advisers should welcome the remuneration changes as a way to build trust. He said: “I do not doubt the integrity of the vast majority of advisers but no one can doubt the financial detriment caused to consumers as a consequence of misselling scandals.”
Hoban said he recognised the strength of debate over grandfathering but that a minimum qualification standard will reassure consumers their adviser has a high standard of technical knowledge.
He said: “We need to think about how much experience is sufficient for people to be grandfathers and about how we can ensure that experience covers the range of products necessary to provide whole of market, independent advice.
“Consumers are entitled to know their adviser has a high standard of technical knowledge, and a minimum qualification standard should deliver that.”
Hoban praised the role of IFAs and said he received a good service from his adviser.
He said it was right the FSA “gets on with its job” but also listens to the issues being raised. Cicero Consulting director Iain Anderson says this comment suggests Hoban is open to the view that the FSA could be more pragmatic over grandfathering. And-erson says: “On grandfathering, we clearly had a view there may be a need to think again, the next question is whether or not Hoban takes the problems to the FSA.”