Murray also says that the UK could benefit from the return of direct sales forces selling simple products and protection and suggests that primary advisers may be the way to make this happen.
Money Marketing recently reported that the ABI believed any definition of CARIS by the FSA should exclude commission offseting of fees and include only fee charging advisers or those who take a fee or take an agreed amount from the fund.
In a letter to be published in this week’s Money Marketing, Murray argues that Transact’s 2,300 advisers should be able to meet these criteria where clients direct the wrap platform to deduct these sums from the platform either as an “hourly rate, a fixed or an ad valorem fee”.
He takes with issue with comments by Syndaxi Financial Planning’s Robert Reid and IFAP’s David Elms that where the FSA to apply to ABI’s view only 2 per cent of the market could make the grade as professional financial planners.
The letter says: “The Finance Act 1986 got rid of many of the worst excesses that existed in financial services before that date but, sadly, it also signalled the dramatic decline of the direct sales forces. Since then the sale of life and pension policies to all but the more affluent has declined in equal proportion.
“Most professional financial planners will not be able to afford to operate in this market. A return to the commission paid sales man or woman, who believes strongly in the need for individuals and families to be protected against premature death or prolonged retirement is to be welcomed.”