Speaking to Money Marketing at the Conservative conference in Birmingham last week, Hoban said there is a danger that the RDR could reduce access to financial advice.
He said: “There are lots of people who do not have access to financial advice and support. We need to close the advice gap. That is the outcome I would like to see from the RDR.
“The sales and advice division set out in the interim paper reflected a good deal for advisers and there is a lot more clarity over what is advice. My only concern is whether the distinction between advice and sales is so stark that it creates a different set of problems in terms of access. We need to be very careful that we do not draw the boundaries so tightly that customers actually lose out.”
However, Hoban said it is important that whole of market IFAs retain their unique selling proposition under whatever form the RDR eventually takes.
Aifa’s response to the interim paper urged the FSA to press ahead with clear definitions of sales and advice to avoid consumer detriment, against strong lobbying from banks and insurers.