In an interview in this week’s Money Marketing, McFall says he agrees with the FSA’s change of direction, signalled in last week’s retail distribution review interim report, which could see multi-ties stripped of their adviser status.
McFall also revealed the committee will investigate the RDR this summer.
He says: “This is a good first step. There is an opportunity for a good basis of discussion between the industry and the regulator here. It is definitely important to clearly distinguish between advice and sales and people should be told what they’re paying for, because then nobody can come back and say ‘I did not know what was happening’.
“The industry needs simple language and transparency. If you get the simplicity and transparency, then the propensity for misselling is vastly reduced.”
Cicero Consulting director Iain Anderson says: “The chairman of the Treasury select committee welcoming the distinction between advice and sales is an important entry into the debate and him doing this so early will be something that people will take notice of. It will set the tone for Parliamentary interest, of which so far there has not been much.”