Informed Choice director Martin Bamford says: “Generally it is going to be bad news for large number of IFAs. The hints have been there over the past year or so, in speeches and announcements, but the majority of IFAs have had their heads in the sand.
“From a market point of view it is going to be a rough period.”
Bamford says the FSA are going to have some work to do to ensure that many people don’t miss out on financial advice.
“The FSA are going to have to come up with some other ideas to ensure that people don’t miss out on advice. This is where things like the Thoresen review of generic advice may come in.”
Bamford also says that the FSA have managed the announcement well.
“It is a very bold move but they have been very clever about how they have gone about it. By asking the industry for solutions they can say all they did was say the model was broken.
“When the protests come in they can say ‘well this is what you wanted.”