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RDR does not take a broad view of financial services, says Navigant

The RDR discussion paper fails to take a holistic view of the financial services industry, according to Navigant Consulting.

Navigant also says the RDR persists with using old regulatory distinctions that only serve to complicate and confuse consumers.

Head of life and pensions Kenn Taylor says the model set out in the discussion paper not only breaks the financial services industry into too many parts, it is also too complicated.

He says: “The FSA has suggested four tiers of consumer advice: professional financial planners, general financial advisers, primary and generic advice, with each tier having different educational requirements, payment methods and the ability to call itself something different if it wants to. However, we should be making advice services more simple and easier for the consumer to understand. These proposals seem to do precisely the opposite.”

Taylor says the main challenge to firms is finding a way in which advice can be provided cost-effectively.

He says: “Although professional standards are important, they will do nothing to solve the economics of distributing to the mass market. As it stands, the more wealthy segments of the market are well-serviced and profitable for advisers. However, the mass market will only become profitable in a lighter touch regulatory environment.

“The key is to reduce confusion, increase clarity and address the concerns in the market. Therefore, we believe there is only space for two routes: professional advice and general guidance with clear connections to move between the two.”


Morrison takes up role of AMPS chairman

The Association of Member-Directed Pension Schemes has elected Winterthur pension strategy manager Mike Morrison as its chairman following its AGM.AMPS represents the views of Ssas and Sipp providers and a number of other firms such as advisers, lawyers and stockbrokers who are involved in this part of the pensions industry.The new committee also includes Rowanmoor Pensions’ […]

A shaw thing

Sam Shaw is a reporter on Money MarketingTuesday night saw me going back to my former contacts in the protection world, the brown-eyed beauty Peter Chadborn, Scouse’s finest Andy Milburn, soon-to-be-daddy Mark Locke and, of course, the omnipresent in the protection world Kevin Carr. Andrea “Core of Steel” Tryphonides was there, too, as were the […]

HMRC confirms IHT exemption for Asp income

The Government says withdrawals from unsecured or alternatively secured pensions will be considered as income for inheritance tax purposes, offering new IHT planning opportunities for advisers.HM Revenue & Customs has confirmed the rules in correspondence with Skandia. It had been unclear whether income from USP or Asp was considered as income or a mixture of […]

Abbey launches new long-term fixed rates

Abbey will be launching a host of longer-term product rates from next monday.It will offer new improved three-year fixed rate products which Abbey claims are now for the price of two-year fixes at 5.72 per cent with a £999 fee.Abbey is also launching new 10-year and 15-year products, availble at five-year rates at 5.74 per […]

Treasury looks to address advice gap

By Jamie Clark, Business Development Manager, Royal London Hot on the heels of consultations on tax relief and pension transfers and early-exit charges comes a new investigation into the advice gap, and how this can be bridged. Ever since the new pensions freedoms were introduced, concerns have been raised about how people can get access […]


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