IFAs say the quality of advice given should be the focal issue rather than how they are paid for that advice.
Advisers at the Money Marketing commission round table shared the view that the FSA ought to be looking at quality of advice and the confusion being caused by different adviser titles rather than commission and remuneration models.
Helm Godfrey deputy chairman Roger Sanders said: “Financial planners are selling advice, financial advisers are selling products.”
Master Adviser principal Doug Brodie said: “FSA chairman Callum McCarthy’s issue is that clients are not being well served and he has gone off down the commission route. It is about quality of advice, not how those advisers are paid.”
CBK principal Peter Chadborn said: “I think that there are too many intermediaries – not IFAs but intermediaries – who are allowed to masquerade as financial advisers when really they are salespeople. Many an IFA must come across new clients who have been advised in the past and clearly the quality of advice is questionable because those people have been operating in a sales environment with targets. They should not be allowed to call themselves financial advisers.”