IFP interim chief executive Steve Gazzard has backed calls for large distributors to disclose all payments they receive from providers.
Speaking to Money Marketing at the IFP annual conference at the Celtic Manor in Wales this week, Gazzard warns the issue of provider inducements to large adviser firms is a ”very murky place”.
He says: ”We need to be really squeaky clean in the way that panels are put together. The best way to do that is for networks to disclose all payments received. Disclosure is the answer here.”
Last month in Money Marketing, Threesixty managing director Phil Young revealed his firm expects to receive £400,000 in payments for training and events from 17 different providers this year and called on all distributors to make similar disclosures.
An FCA thematic review, published in September, found that over half of firms investigated could be in breach of FCA rules.
Gazzard suggests the network model still has a future as long as firms are clear about their business models.
He is also a big supporter of proposals to introduce financial education in schools.
He says: “I would like to see some serious resources put into financial education in schools. There’s only so much you can do to educate adults.”
Referring to last week’s announcement that new capital adequacy rules are to be delayed by at least two years, Gazzard says his members were pleased by the outcome, despite it not being a priority for most of them.
He says: “Our members are not telling me it’s a massive issue. But we are increasingly being asked by members to educate the regulator on what financial planning is and to ensure they understand that it reduces risk and improves outcomes. We hope that will help reduce the regulatory burden.”
Gazzard says the IFP board will review its structure next March with the hope that chief executive Nick Cann will be able to resume his role. Cann is currently recovering from a stroke and was warmly greeted by delegates at the conference.