CompaniesOct 13 2015

PFS on how it will avoid fate of ABI and IA

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PFS on how it will avoid fate of ABI and IA

Newly appointed Personal Finance Society president Brendan O’Ciobhan has said that unlike other trade bodies, the PFS “does not feel under threat or pressure”, adding “for us its really about making sure that we continue to develop the engagement and speak as one voice”.

FTAdviser interviewed Mr O’Ciobhan about the future of the professional body in light of the current struggles at the Investment Association, which last week was threatened with an exodus of members, prompting the resignation of chief executive Daniel Godfrey.

The IA is far from the only trade body being hit with exits, as last month Aegon announced it was following Legal and General’s lead in leaving the Association of British Insurers.

Mr O’Ciobhan said the PFS will look at how it is situated every couple of years and undertakes research across the market to look at membership fees and how it compares with other professional bodies, to see if the organisation is out of kilter or not.

“We are also looking at what we are delivering to members to see if they will be getting value for money. We have done that exercise within the last two months and didn’t find anything out of line particularly.

“The feedback from membership has been improving year on year - the engagement, the amount of people attending the events is growing, the amount of events we put on is continually growing - certainly over the last 12 months it has doubled.”

Mr O’Ciobhan put the appetite down to the Retail Distribution Review, which he said has brought a change into the sector which was “fundamental and good.”

His comments are in stark contrast to those made by Gillian Guy, chief executive of Citizens Advice, who yesterday (12 October) told FTAdviser that the Retail Distribution Review has exerted upwards pressure on the costs of advice, exacerbating the price gap problem.

Mr O’Ciobhan also talked about the place robo-advice has in the market, stating that while it is in the very early stages, in terms of allowing people to access investment advice, it may be very helpful.

“The next couple of years will be interesting, the robo-advice market will grow and expand. There is a huge demand for what is generically called simplified advice.”

ruth.gillbe@ft.com