Opinion  

Reduce IFA liability and the cowboys will ride in

I am writing in reference to Apfa director general Chris Hannant’s call for liability issues to be tackled when it comes to advice in the pension market.

The principle of advisers standing by their advice is what sets us apart. Reduce this liability and the gates are open. We already have all this ‘free’ guidance. Reduce liability and the banks are back with a bang.

The perceived issue with liability stems from trained and knowledgeable advisers who are telling potential clients to rethink their intended decimation of their pension pots. Reducing liability would open the door for cowboys and those untrained ‘advisers’ who would just follow anything the client wished in order to trouser the fee – or heaven forbid – the commission.

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What Apfa should be pressing for is to make it compulsory for anyone seeking vesting advice to see an IFA. This could be partially state funded by using funds hitherto allocated to Mas and TPAS.

Harry Katz

Consultant,

HA7 Consulting,

Stanmore,

Middlesex