The introduction of generic advice runs the risk of devaluing the work of financial advisers, Royal London has warned.
At Money Marketing Live last week, Royal London chief executive Mike Yardley said that the phrase “generic advice” is a contradiction in terms and an alternative such as “generic help” should be used instead.
He said there is a great danger that a generic advice regime could lead to the public coming out of the arrangement with the view they have had specified advice they can rely on and, if they take out the wrong product as a result, they will look to blame the industry.
He said the strength of the IFA brand is based on the word “advice” and any advice stream that is general and not specific will devalue the adviser community’s proposition.
Yardley said: “I think advice should be confined to specific regulated individuals and should not be devalued by using it for other forms of distribution. My problem with calling it advice is it could devalue the industry. If it is called generic help, that is a positive.”