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RDR will add to confusion, says

The RDR has fallen short with the FSA yet again failing to define advice levels, says director Ashley Clark.

Clark says: “Numerous layers of advice merely allows clever companies and ‘salespeople’ to confuse people with what service they are actually offering and does nothing for financial inclusion. Primary advice or professional advice will mean nothing to the unsuspecting client – they will still not have a clue what they are being offered.”

He adds that simplifying suitability reporting requirements to encourage financial inclusion by keeping advice costs lower is also not the answer.

Clark says: “It may reduce costs but the standard of help to the consumer will also drop. I suggest if you have focused factfinds, good client management systems and reporting procedures, you can offer full advice on simpler products at lower cost anyway.”

Clark also says that requiring only ‘independent’ advisers to agree a charge with a client before proceeding is ridiculous.

“All financial products and services should have an agreed price before you commit to purchase a product or service. This means that every intermediary, irrespective of advice status, should pre-agree their remuneration basis before they proceed, but I thought we were supposed to already have this?”

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Meteor brings out euro plan

Meteor Asset Management has brought out a euro-denominated version of its prima growth plan, a guaranteed equity bond that has an early maturity feature.

Fees based on assets means win-win-win, says Hargreaves’ advice arm

Following the raging debate over fees versus commission accelerating in light of tomorrow’s dicussion paper on the RDR, Hargreaves Lansdown says its proof has been in the pudding since it converted in 2003. Hargreaves Lansdown chartered financial planner Danny Cox says: “Back in March 2003 Hargreaves Lansdown’s advisory division, Financial Practitioners, hit the MM headlines […]

Let there be enlightenment

Simon Hildrey says the choice of ethical funds has almost doubled within three years as investors become switched on to environmental issues. Despite some decent performance, however, it is clear there is still a certain price to pay for investors to salve their conscience.

FOS pamphlet will spell out reasons for declined claims

The Financial Ombudsman Service is developing a factsheet on medical non-disclosure to help consumers understand the reasons for declined claims.The leaflet will be sent to all consumers who complain to the FOS about a rejected claim and will be available on its website.It will detail the grounds on which the FOS makes its decisions and […]


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