Portillo slams IFAs&#39 burden

IFAs are over-regulated and overtaxed, according to Shadow Chancellor Michael Portillo.

Speaking at the IFP annual conference , Portillo slammed what he described as a burden to the expansion of financial services in this country.

He said the Opposition still has a number of disagreements with the Government over the Financial Services and Markets Act, which gives the FSA its regulatory powers, but he was not forthcoming on how the Tories would change things.

He believes greater competition will benefit consumers and those working in the industry.

Portillo also expressed his concerns over stakeholder, claiming it will be impossible to provide proper advice within the 1 per cent charging cap.

While agreeing with the objective behind stakeholder, he believes the Government has gone about it in the wrong way. He said the minimum income guarantee pledged by Chancellor Gordon Brown means a large number of the target audience will be better off in retirement without a stakeholder.

He expressed fears that life offices and IFAs will be left to shoulder the blame for the Government&#39s shortcomings over stakeholder.

Concluding his speech, Portillo said: “To all of you who participate in advising people to save for their future, I want to thank you.”