ABI: Reform of financial advice must put customers first

ABI: Reform of financial advice must put customers first

ABI: Reform of financial advice must put customers first

Responding to publication today (Tuesday 29 April) of the FSA’s feedback statement on the Retail Distribution Review, ABI Director General Stephen Haddrill said:

“The ABI believes that simple, low-risk products should be sold in simple ways so that consumers are not bound up in red tape and savings are re-energised. We support the FSA’s willingness to establish such a market.

“In relation to complex matters where advice is needed, the ABI backs the FSA’s commitment to higher professional standards for advisers. We must aim for excellence.

“We also support its belief that the perception of bias being created through the remuneration of advisers should be removed, in line with the ABI’s suggestions for achieving this. We strongly believe that advisers’ remuneration should be determined by consumers’ needs and wishes, not by advisers’ relationships with product providers.

“The ABI does not believe it is necessary to draw artificial distinctions between advisers and so to create complexity for consumers by applying different regulatory requirements to advisers of different types. All advice, whether given by an IFA or in a bank, must be suitable for the customer and all advisers must treat customers fairly under existing regulations. The combination of these requirements with professionalism and transparent payment systems for advisers is all that is necessary.

“We look forward to the continuing debate and value the close discussions already facilitated by the FSA.”

– ENDS –

Notes for Editors

1. Enquiries to:
Alan Leaman 020 7216 7440 (Mobile: 07957 482 330)
Jonathan French 020 7216 7392 (Mobile: 07958 330 480)
Malcolm Tarling 020 7216 7410 (Mobile: 07776 147 667)
Erfan Hussain 020 7216 7411 (Mobile: 07712 841 184)
Kelly Ostler-Coyle 020 7216 7415 (Mobile: 07968 364 302)

2. The ABI is the trade association for Britain’s insurance industry. Its nearly 400 member companies provide over 94% of the insurance business in the UK. It represents insurance companies to the Government, and to the regulatory and other agencies, and is an influential voice on public policy and financial services issues. ABI member companies hold up to a sixth of all investments traded on the London Stock Exchange, on behalf of millions of pensioners and savers.

3. An ISDN line is available for broadcasts.

Copies of all ABI news releases, together with other information from the Association, can be seen on our website http://www.abi.org.uk