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Sandler says IFAs support complexity

Ron Sandler has accused IFAs of supporting complexity in the design of products bec-ause it helps them to justify their existence.

He said there was a significant link between complexity of financial services products and a lack of consumer trust.

Sandler told delegates at the Ernst & Young Financial Services Summit that the Gov-ernment could not contemplate introducing compulsion for long-term saving until the industry had rebuilt consumer trust through reducing product complexity.

But IFAs say they do not create the complexity and would do more business if products were less complex.

Sandler said: “Complexity helps to justify IFAs&#39 continuing role. There has to be ext-ernal intervention to achieve simplification.

FSC Investment Services managing director Frank Cochran says: “This is a stupid accusation. Simpler products from the product providers would actually help us. Our job is to interpret what the life offices put out into terms the man in the street understands.”

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