View more on these topics

IMA warns of over simplifying advice process

The Investment Management Association says the FSA’s proposals in the retail distribution review could over simplify the advice process and could increase the risk of misselling.

But it says the FSA is right to address commission bias within the current advised market.

IMA chief executive Richard Saunders says: “The concept of offering a range of simple products backed by simple advice has been tried before without success. It risks creating an un-level playing field which will work against more transparent products such as funds.”

The IMA are warning the FSA against relying on retail banks as the main distribution route.

Saunders says: “Even a simple product can be missold and we are concerned that certain types of distributors, and therefore products, may be favoured in a mistaken belief that the product being sold is ‘simple’.”

Saunders is also calling on the FSA to use the RDR to tackle the issues of commission bias and misselling.

He says: “We should not shy away from accepting that commission driven misselling is a reality in the retail market. I would urge the FSA to consider how to tackle this directly.”

Click here to read all RDR stories

Click here for the straw poll


Wagstaff trades New Star for Gartmore

New Star retail sales and marketing managing director Phil Wagstaff has resigned from the company to take up the role of global head of distribution at Gartmore.Wagstaff will be responsible for the distribution of all retail, institutional and alternative products in the UK, Europe, Japan and the US and will also assume responsibility for the […]

Tapering of annual allowance – adjusted and threshold income

The definitions of adjusted income and threshold income used to determine whether, and to what extent, someone’s annual allowance will be reduced can be confusing.  Here we try to make sense of it all. The annual allowance will be reduced for high income individuals from 6 April 2016.  Our previous article Tapering of annual allowance […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm