View more on these topics

Review set to split advisers in segments

The retail distribution review is likely to call for a clear graded segmentation of advice from financial planner through to transactional-based advisers and down to a simplified advice service, according to the FSA.

Speaking last week at a conference on the future of UK regulation conference, FSA director of retail policy Dan Waters said the RDR professionalism committee has put forward proposals for the adviser community to offer a wider range of services with advisers clearly defined depending on skills and qualifications.

Waters said there was an emerging consensus that higher standards of behaviour and competence are needed and such a move would improve the professionalism of the sector.

He said this segmentation of advice would then sit above a generic advice service that looks set to be created on the back of the current Thoresen review.

He said under the proposals there would be a role for FSA regulation but the industry is also likely to play a key part by developing and implementing a standards’ framework through its own professional bodies.

He said the segmentation of the advice model implies a higher minimum standard of professionalism, particularly at the more affluent end of the market and more rigorous continuing development for all advisers.

Waters said: “In line with the thinking of other industry groups, this group has suggested that a wider range of services may be more appropriate in today’s world, with advisers differently skilled but suitably qualified according to the services supplied.

“This would start with fully fledged financial planners offering advice typically to the higher end of the market where complex portfolio advice is needed, to advisers operating at a more transactional level for consumers who have more focused and possibly less comprehensive portfolio requirements, through to those advising on simpler products through some kind of simplified advisory process.”

Recommended

Skandia pension business goes on booming

Skandia UK has continued to reap the benefits of A-Day, posting a 20 per cent increase in first-quarter gross sales to £2.3bn from £1.9bn in the same period last year.

Broker Talkback

Should Hips be scrapped completely?Yes 87% No 13% Yes “They are no use to anybody, man or beast.”Paul Bovey, Nelson Dean Associates Yes “They are a complete waste of time and ruin the freedom of choice both for sellers and buyers.”Keith Lilley, Tower Financial Services No “In essence, they are a good idea that could […]

Gillies will focus on Cofunds’ distribution

Cofunds has appointed Ron Gillies as head of strategic distribution relations.He will report to managing director Andy Creak and will take responsibility for distribution through Cofunds’ key relationships with other financial institutions to help drive the accumulation of assets in partnership with sales and marketing teams. His role will focus primarily on Legal & General […]

Scot Wids paid out £25m of CI claims last year

Scottish Widows paid out more than £25 million on 774 critical illness claims in the year up to October 2006.The provider has released its critical illness claims history, showing a total payout of over £120 million for 3,703 critical illness claims between January 2000 and October 2006.Cancer accounted for more than 60 per cent of […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment