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?”