Moneysavingexpert.com founder Martin Lewis has echoed warnings the RDR will reduce access to advice.
Giving evidence to the Treasury select committee this week, Lewis said: “By the nature of what I do, I deal with a wide spread of the public. I worry that if you ask people to pay for financial advice, they will not pay.”
He said there is a lack of understanding of the advice landscape among consumers, adding that some people went to banks and were sold payment protection insurance thinking that the commission-incentivised seller was an adviser.
He said: “I am not the greatest fan of IFAs but I certainly think they are better than tied agents. They are far better at what they do, which to me is protection, pensions and investment advice, than somebody who does not have a clue.
“Tying an IFA’s hands by not allowing commission, in an environment where people would prefer it, seems to be a problem for me.”