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LIA and Aifa attack FSA move to &#39de-skill&#39 advice

The LIA and Aifa say FSA plans for simplified products will de-skill financial advice and they want to see qualifications for the sale of stakeholder products.

The LIA and Aifa are pressing for an exam and training sessions for people selling the simplified products.

They are against FSA proposals that would see a scrip-ted list of suitability questions being read to clients to judge what products can be sold.

LIA head of public affairs John Ellis believes this app-roach is destined to fail in firms where all the advisers are unqualified.

The trade bodies have made their points in respon-ses to an FSA consultation paper called A Basic Advice Regime for The Sale of Stakeholder Products.

Aifa believes that a better route would be to alter the limited advice regime that is being put in place for workplace advice on group pensions.

Aifa says: “Giving financial advice is a skilled activity. It requires an empathy with and understanding of consumers.

“It requires an ability to translate and apply information given in good faith by consumers. The consultation paper proposes that this is effectively de-skilled in circumstances where the outcome of a poor purchasing decision is likely to be particularly adverse.”

Ellis says: “It would worry us if the role of financial advice is downplayed. It takes a certain amount of knowledge to assess if a client can afford something. We can see how this simplified sales regime would work in bigger firms though.”


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Witan&#39s move to a multi-manager structure has been described as a halfway house by one of the investment trust sector&#39s leading analysts. Close Wins investment trust research argues that a true best of breed vehicle would be unlikely to hold 50 per cent of its assets in tracker funds, as is the case with the […]

Axa starting £6m ad push to unite brands

Axa is running a £6m advertising campaign to bring together its three UK businesses under a single branding. The campaign will unite Axa Insurance, Axa Sun Life and Axa PPP Healthcare under one brand strategy. The campaign will use a Be Life Confident theme to promote its investments, pensions, healthcare and insurance products. The campaign […]

Out of context

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Tesco starts supermart Sweep into mortgage business

Mortgage lenders believe Asda may move into homeloans proposition after Tesco revealed last week that it will add mortgage products to its personal finance scheme. Halifax press spokesman Paul Fincham says Asda and other leading supermarkets making an entry into mortgages should not be ruled out, saying: “There is a pretty low barrier to entry […]

‘How to…audit your auto-enrolment scheme compliance’

Avoid pension penalties with our auto-enrolment checklist

According to the Pensions Regulator’s annual commentary and analysis report released this month, 785 potential non-compliance cases were referred for investigation, with 23 auto-enrolment compliance notices issued. And they predict that the use of their statutory powers is only going to increase.


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