Concerns have been raised that the Financial Conduct Authority's recent work on adviser fees places a greater importance on products rather than service.
The issue was highlighted in the latest edition of the FTAdviser Podcast, which focused on the FCA's recent paper on the financial advice market post-RDR and FAMR.
This raised concern about the lack of competitive pressure advisers face, as well as a "significant" clustering of fees which, the regulator said, suggested the advice market was not "well-functioning".
Appearing on the podcast, Tim Fassam, director of government relations and policy at adviser trade body Pimfa, and Alasdair Walker, a chartered financial planner and managing director of Handford Aitkenhead & Walker, also discussed the FCA's findings that advisers charging 1 per cent were giving fundamentally the same service as those charging 0.5 per cent.
Addressing this point, Mr Walker said: "The whole topic for me is thorny because the measurements used to determine service are what matters and I don't believe the regulator collects enough to be able to make a comment on service.
"The regulator says the service is the same and they may measure that on the number of pensions written and investment policies written, or whatever their measurements are, which are invariably product [based] because those are the returns we give back to the regulator.
"But certainly the neck of the wood that I find myself in, and that I find myself talking to people in - and I appreciate it is a broad church, the world of financial advice - our product is the ongoing service, the expertise, the immeasurables.
"Tax planning is a great example. How can you, as a regulator who measures product as an output, what tax planning has been undertaken? I just question the basis of the reporting. I would love to see the data set and how they have come to those conclusions."
Mr Fassam agreed with Mr Walker and pointed to research into the non-financial benefits of financial advice such as peace of mind and confidence, which he said was part of the service clients received.
He said: "A raw numerical assessment of outcome won't capture any of that, won't capture the psychological benefits of taking financial advice that may well be more resource intensive.
"An adviser may well have to spent more time reassuring a nervous customer than they will with a confident customer, but the economic outcomes may be quite similar."
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damian.fantato@ft.com