Distribution and development director Keith Richards says the FSA went back to basics after respondents to the original RDR proposals called for a simpler landscape, prompting comment that the regulator went too far the other way.
He says: “Whether the FSA misunderstands what respondents meant by ‘simpler’, or if they have taken this idea to its most extreme conclusions for the purposes of demonstration and discussion is unclear, however at Tenet we believe that it is better to start from a perhaps over-simplified foundation, than work backwards from a complicated structure.”
But Richards says the FSA has acknowledged that a simplified approach has inherent drawbacks and that it recognises there are practical implications and legal constraints.
He says Tenet supports the principle of raising qualifications and believes that the cost of advice should be agreed between the adviser and the client.
He says: “From an IFA perspective the interim report is very welcome and we would see it as laying a good foundation on which to build. Similarly we believe that the regulator has provided a clear signal and opportunity for the tied sector to create a more straight-forward, cost efficient service, offering a wide range of protection, savings and investment products through a dedicated salesforce of well-trained and motivated company representatives/sales consultants.”