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Advisers want FAMR to make advice affordable

Advisers want FAMR to make advice affordable

One in four advisers would like the Financial Advice Market Review to suggest alternative affordable advice models for the mass market, according to a poll from Zurich.

The online poll carried out among 74 advisers between 18 January and 1 February found a fifth of advisers (21 per cent) wanted to see firms providing simple advice for existing clients with 23 per cent calling for an remuneration structure that would enable advisers to cater for the mass market.

As part of the Financial Advice Market Review, which is exploring ways to bring advice back to the mass market, for the first time in a decade the Financial Conduct Authority confirmed it will reconsider the unlimited liabilities advisers now face.

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When asked how quickly advisers would like to see FAMR recommendations implemented, the most advisers said within one year (40 per cent).

Others prefer a shorter timescale, citing within six months (23 per cent) or immediately (10 per cent).

Other advisers preferred a longer implementation period with more than a fifth (22 per cent).

Adviser View

Scott Gallacher, director of Leicester-based IFA Rowley Turton, said: “We are still in phase one of the Retail Distribution Review with a split between independent and restricted advice – which I am not sure many consumers appreciate as yet.

“Restricted advice should be much cheaper than independent advice. But I think it has just led to higher profitability amongst restricted firms.

“Providing advice to the mass market cannot be done properly from a base of 20,000 advisers nationally.

“Now, there has been some talk of banks coming back to serve the mass market. But with their past record of mis-selling on a vast scale I do not think they should be seen as a white knight.”