The Financial Services Authority has recently issued a blue print for the future of the financial services' industry.
The latest consultation paper response called the “Retail Distribution Review” was published last week. The aim of the review is to.
Provide greater clarity for consumers. The proposal distinguishes between independent financial advice and “restricted advice”. Restricted advice refers to advisers that are only able to offer advice on a single or limited number of products.
Raise professional standards – Advisers will have to be qualified to a higher standard than the current minimum requirement. A professional standards board is to be established.
Changes to the way advisers will be remunerated. Advisers will be required to set out exactly the costs to the client for any work that is to be carried out. It is hoped that this will provide greater clarity for consumers and allow them to compare services and costs between advisory firms.
Although the recommendations are still proposals the planned date for implementation is the end of 2012.
Consilium Asset Management broadly endorses the recommendations that have been made. We are already some way to ensuring that we meet the proposed recommendations prior to 2012.
If you would like to find out more about independent financial advice our website has more information on the benefits of our independence.
If you have any advice issues you would like to discuss with us, please feel free to contact us by email or alternatively on 01454 321511.
Graham Bond
Consilium Asset Management
