IFA Promotion Rejects FSA’s Proposed Shrinkage Of The IFA Sector
The FSAs consultation paper is called making the market work for consumers quite simply, these proposals wont make the advice market work for consumers. What they will do is make it harder for middle England to find independent financial advice, said David Elms, Chief Executive of IFA Promotion.Consumer research, and consumer groups, have consistently argued that independent financial advice is the best form of advice for consumers but these proposals will, according to the FSA (section 4.19, page 48), lead to a shrinkage of the sector Mr Elms continued.
IFA Promotion believes that these proposals would lead to a two tier system developing. Independent advice would be available for the wealthy whilst middle England would be priced out of the independent market or find that independent financial advice simply isnt available in their area.
David Elms continued: Consumers need a regulatory framework that allows independent financial advice to flourish and compete with tied advice on an equal basis. Over the next three months it is vital that industry and consumer groups work together to ensure that this is the case.
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For further information please contact:
For further information, please contact: David Elms or Richard Winder CEO Lansons Communications Independent Financial Adviser Promotion Tel: 020 7490 8828 Tel: 020 7833 3131
Notes to Editors
1. Independent Financial Adviser Promotion
Independent Financial Adviser Promotion Ltd. was established in 1989 to promote the value and accessibility of independent financial advice to the public. It represents nearly 10,000 firms of independent financial advisers across the UK and is sponsored by 29 leading financial institutions.
IFA Promotions central belief is:
Consumers have a right to financial advice that is independent of the providers of financial products - i.e. independent financial advice.
Furthermore independent financial advice should be:
Affordable. The option to take independent financial advice should be available, by right, to all - not just the wealthiest in society.
Convenient. IFAs should be available in the location of the consumers choice, wherever they live in the UK.
Transparent. It must be clearly transparent to consumers who is able to offer independent financial advice and who is not.
2. Independent Financial Adviser Promotions sponsors
AXA Sun Life | NPI |
Barclays Global Investors Funds | Prudential |
BUPA | Scottish Equitable Plc |
Canada Life | Scottish Life |
Clerical Medical Investment Group | Scottish Mutual Assurance Plc |
Dresdner RCM Funds (UK) Ltd. | Scottish Provident Institution |
Eagle Star | Scottish Widows Plc |
Family Assurance Friendly Society Ltd | Selestia |
Friends Provident | Standard Life Assurance Company |
INVESCO Fund Managers Ltd | Swiss Life (UK) Plc |
Legal & General | The Skandia Group of Companies |
National Mutual | Tunbridge Wells Equitable Friendly Society |
National Savings | Winterthur Life UK Ltd |
Norwich Union Life | Zurich Life Assurance Company |