Chief development officer Peter Mann says that he welcomes the retail distribution review consultation paper’s distinction between independent and restricted advice.
But he does not consider that verbal disclosure can be monitored effectively and is calling for the FSA to mandate a precise form of words that firms must use in their documentation to describe the services they provide.
Skandia has also urged the regulator to phase out basic advice, saying that consumers may get confused between basic advice and a simplified advice process.
Mann says: “Headline proposals are sensible and provide the industry with a significant opportunity to improve outcomes for consumers.
“There are still many issues that will need to be ironed out, particularly the disclosure requirements for the various types of advice.”