IFA Promotion has warned the replacement to the menu and IDD must prioritise consumer protection and ensure a level playing field across advice channels.
IFAP chief executive David Elms says he is concerned by the FSA’s announcement that the menu and IDD are to be scrapped and speculation about what will replace them.
He says the documents provided a level-playing field between different advice channels and made it clear to consumers that advice costs money.
Elms says: “The menu and IDD encouraged more advisers to better explain the value of their service and led more consumers to pay for advice by offsetting fees with commission.
“We look forward to working with the FSA to ensure that any replacement continues to meet the original objectives of the menu and IDD.”