Consumers about to retire consider impartiality and expertise as the most important factors when considering the guidance guarantee, Laurence Baxter of the Chartered Insurance Institute, has said.
The head of policy and research at the CII said: “Since the chancellor’s speech earlier this year announcing the retirement reforms, much of the stakeholder debate and government’s emphasis has been centred around ensuring impartiality of its proposed guaranteed guidance service.”
Mr Baxter’s comments came as the CII revealed results of a survey, which asked people aged 50 and above to rate the importance of each of a list of 10 factors on a scale of one to 10.
The two most popular choices were ‘completely impartial’ and ‘delivered by someone with an appropriate level of expertise’.
These scored above such factors as ‘offered free of charge’, ‘includes a written record of the session’, and ‘is offered face-to-face, over the telephone, or on the internet’.
According to Mr Baxter, the CII conducted this survey in response to the FCA’s consultation on the guidance guarantee published in July.
“This research supports the CII’s view that expertise is as vital to the effective delivery of guarantee as impartiality,” he added.
Adviser view
Austin Broad, technical director for listed advisory firm AFH Wealth Management, said: “Independent financial advice in a post-RDR framework provides the ideal fee-based backdrop around which to manage conflicts of interest and deliver impartial advice to ‘at retirement’ clients.
“Independent financial advice encompasses guidance and education around complex financial outcomes as well as recommending a suitable financial product.”
