View more on these topics

Industry and CA clash over Catmarked advice

The IFA sector has hit out against Treasury proposals to Catmark financial advice while the Consumers&#39 Association has broadly welcomed a quality standard.

The ABI has warned that introducing a Cat standard for advice would be wrong, with more work needed on the objectives and scope and the role of the Government and regulator.

In its paper, Standards for Retail Financial Products, the Treasury proposes to introduce a Cat standard for a healthcheck financial advice service, where an adviser identifies generic products suitable for a customers&#39 needs. Sofa, the LIA and Aifa all voice their concern over the proposals in their responses to the paper.

But the CA says it supports the idea of basic qualitymarked advice and recommends the creation of a new type of adviser to deliver advice free to consumers who may not be able to afford to visit an IFA.

The CA would see advisers, similar to paraplanners, providing the service through networks such as Citizens Advice Bureaux and post offices.

In its submission, Aifa says: “Cat-standard advice is going to be most appropriate for a Cat-standard investor and we have no indication that they exist, even with the completion of the Human Genome Project.”

Sofa and Aifa say the Treasury has failed to recognise that it is already common for IFAs to offer generic advice which provides consumers with a financial healthcheck-style service. The LIA says the inclusion of cost in benchmarks is “at least inappropriate and at most damaging.”

Aifa and the LIA also say they are concerned about the CA&#39s proposals for the creation of a new category of adviser.


Advisers should thank L&G

IFAs should thank John Morgan, head of public relations at Legal & General, for claiming: “Any intermediary who feels a person needs full advice on whether they buy a pension is incorrect” (Money Marketing, April 5).What Mr Morgan&#39s statement does is to confirm what many of us have argued for some time, that the company&#39s […]

Promoting a protection package

April 6 may seem an illogical date on which to start a new financial year but apparently the reason is historical involving the Romans, Papal declaration and a timespan of several centuries. The date was finally settled upon in the mid-18th Century.The start of this financial year may also be a historical landmark for ushering […]

Mercantile brings down rates with new mortgage

Tyneside-based Mercantile Building Society has brought in the 1.85 per cent discounted mortgage.Aimed at both first time buyers and people who are looking to remortgage, the mortgage has a discount of 1.85 per cent for the first three years of the loan, giving it a payable rate of 5.29 per cent for loans of up […]


PimCo Trustees has introduced a self-invested personal pension plan (Sipp) that is aimed at the sophisticated end of the market.The essential Sipp is a full Sipp that has a set-up fee of £425 and an annual fee of £375. Investors can choose any type of investment that the Inland Revenue allows to be held in […]


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