Simplified advice call isn’t self serving from Tory peers

When Lord Flight talks about simplified advice he is genuine in trying to find ways to convince more people to save and invest. Some advisers on the comment boards see some sort of pro-bank plot, maybe with the Money Advice Service involved, but I really doubt that. Whether simplified advice would be offered through the banks or even through insurers or platforms or tacked on to an IFA, it is surely a reasonable goal to work towards. We certainly don’t want to see some sort of ‘reprieve’ from the RDR so that banks and insurers can rehire all their old sales forces. In fact, any suggestion that the RDR would allow something called primary advice without ombudsman recourse was dropped years ago. But surely it is possible to devise a very simple suite for those simplified advisers to sell. It would require some disclaimers and possibly something close to a basic approved kitemarked list with FCA approval or at least perusal. But is it really beyond our ken?

Could proper advisers could get together, devise a simple suite that meets people’s needs, make some suggestion for how the advice might work, and then challenge the regulator and policymakers to devise a regulatory regime around it, that was not too expensive and not too draconian. It couldn’t be fail safe. That would need a Government  guarantee. But it might take the debate on a little further.

 

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  • http://www.facebook.com/JohnAndrewBlackmore John Blackmore

    Too many vested interests. A multi-asset suite of ISA funds could easily be created for the simplified market – no initial charge and 1% pa max. Sounds like CAT – which failed because Advisers wanted to be paid too much and the Regulated required ridiculous amounts of compliance. A few safety warnings and I would allow such a product to be “sold” by any tom dick or harry with a one off commission of 3% ( taken from the fund) or a trail of 0.25% taken from the fund. You can argue the finer points but 1) costs must be kept down and 2) no expensive advisers need be involved.