Summer paper to clarify details of simplified advice

The FSA intends to release a paper by the summer aimed at enabling the industry to deliver simplified advice.

Giving evidence to the Treasury select committee last week, FSA chief executive Hector Sants said the industry does not feel “sufficiently comfortable” with the regulatory environment to launch simplified services.

He said: “We are committed to publishing a further paper in summer, or earlier if we can, in which we hope to give firms the certainty they need in res- pect of the regulatory questions to enable them to deliver the service.”

Concerns have been raised in the past about how the system will function and who will be liable for any problems arising from products sold through a simplified advice structure.

Sants was responding to questions from TSC member Andy Love, who subsequently asked whether difficulties with the simplified advice regime could lead to the RDR being delayed.

FSA director of conduct policy Sheila Nicholl said: “No, I do not think it is that critical.”