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RDR Interim Report: Which? welcomes clarity over sales and advice

Which? says the separation of advice and sales in the FSA’s RDR Interim Report should increase clarity for consumers.

Principal policy adviser Dominic Lindley also welcomes the requirement for advisers to be whole of market.

He says: “The high level ideas such as the clear distinction between advice and sales, the fact advisers must be whole of market and increasing professionalism are all very positive. I think high quality IFAs will respond well.”

But he says there is potential for the line between advice and sales to be reblurred. The report suggests splitting the sales category into execution-only and guided sales. Lindley believes guided sales may pose problems for consumers.

He says: “It is not simple at the moment. How will tied advisers fit in? In the PPI market 40 per cent of consumers were not clear whether or not the product had been recommended. We need details on how guided sales would work, it may reblur the line between advice and sales.”

Lindley is also pleased the proposal to put a 15 year long-stop on complaints has been scrapped. He says this was not justified and would have put consumers at risk.

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