IFP calls for Government to pay for simple advice

The Institute of Financial Planning says simplified advice could be delivered through a NHS-style framework where the Government pays or contributes to the costs of mass market advice.

IFP chief executive Nick Cann put forward the idea last week in a webcast on simplified advice. He believes a simplified advice solution should see the Government pay advisers for providing straightforward advice or at least contribute to some of the costs.

He says clients with more complex advice needs would be happy to pay for financial advice as they would receive a specialist service.

Cann says: “We know in the financial planning world that clients will pay for advice and if they want a particular type of financial planning advice they will happily pay the sorts of fees that are needed.

“But is there some scope to look at more Government support for an NHS-type service where advisers and firms would get paid for delivering particular types of service to clients? The whole notion appeals to me and I think it is worthy of further exploration.”

In March, FSA chief executive Hector Sants revealed plans to consult on guidance for simplified advice, and admitted the service will be crucial after the RDR. The paper is expected this summer.

Paladin Financial Services managing director Tim Purdon says the state of public finances means it is unlikely the Government will contribute any funding towards financial advice.

He says: “The working man is still prepared to pay for financial advice. IFAs need to set out their stall and if advice is worth getting, it is worth paying for.”