While I would admit that the industry needed a ‘clean up’ to remove product and commission bias, the number of advisers has reduced substantially. There was nothing wrong with commission, provided it was fully disclosed. A simple solution to product bias is to have the same earnings/commission for every provider.
It is a real shame that the RDR was not properly thought out and the adviser community should have been fully consulted before regulators accused everyone in the industry of being unqualified, commission-hungry sales people who do not look after their clients. This is one industry where IFAs looked after their clients before TCF and the RDR.
I am astounded that this has so far cost more than £3bn. How much will it cost the country long term because lower-income families are no longer ‘sold’ on the idea of protection and savings? Who now advises on Isa savings, regular pensions, life assurance and the basic building blocks of good financial planning?
The FCA has focused on products, not financial planning.
If it cost £3bn, I am sure they can repay the advisers that overpaid by £110m due to administration errors.
Ken Bannister
Director
Active Wealth
Fareham
Hants
