RegulationDec 16 2015

Three quarters of IFAs have not responded to FAMR: Zurich

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Three quarters of IFAs have not responded to FAMR: Zurich

Three quarters of advisers have not yet responded to the Financial Advice Market Review, according to Zurich.

The research was carried out between 18 November and 4 December amongst 139 advisers belonging to the New Model Business Academy and 70 per cent did say they were planning to respond to the consultation before it closes on 22 December.

The findings come despite the fact that 80 per cent of advisers responded that they would welcome some form of limit on their future liability.

The FAMR was announced in August this year. Launched less than three years after the RDR, it hopes to examine how to close the so-called ‘advice gap’ for the majority of consumers.

It also follows government’s retirement freedoms, which have allowed consumers free and impartial guidance before withdrawing their pensions from the age of 55.

Both the FCA and HM Treasury are consulting on a range of options for improving customer access to advice in the review.

Alistair Wilson, Zurich’s head of retail platform strategy, said that together with the Association of Professional Financial Advisers, it has been campaigning for a fairer long-stop for many years.

“We want to see action taken to limit advisers’ future liabilities. This should achieve the right balance between safeguarding consumers and delivering much needed certainty for advisers.

“Our findings reveal strong support for some form of limit to advisers’ future liability, which would bring them in line with other professionals, such as solicitors and accountants.”

He added: “This consultation is a real opportunity for advisers to influence the future of their industry, so we’re urging advisers to ensure they don’t miss out on having their say.”

Chris Hannant, director general of Apfa, said he believes a long-stop is necessary to encourage people to invest on providing advice to build capacity in the profession.

Earlier this week, Mr Hannant told FTAdviser that what should be avoided in terms of outcomes in the FAMR is the “refusal to contemplate change”, adding that advisers must avoid “the acceptance of status quo”.