Which? says industry funding for generic advice should come from the FSA levy but the Investment Management Association says this could alienate the industry and a voluntary scheme is needed.
Speaking at an IMA fringe event at the Labour party conference, Which? campaign team leader Doug Taylor said the FSA levy seems “the only sensible way it could work” although the scheme should be run by a separate body with FSA involvement around regulation.
But IMA chief executive Richard Saunders warned that a levy would be seen as an industry tax and said a voluntary arrangement is the best way forward.
Saunders said: “Our preference is to get the industry behind it and to get it to want to fund something with clear benefits to consumers and themselves.”
Taylor said funding for the scheme could come to £200m a year and his preference is a new body to run the scheme, with FSA involvement with regulatory issues and to ensure quality assurance.
He said the success of the scheme depends on all providers becoming involved and stressed there must be no brand awareness to ensure the feeling of independence.