Following the FSA’s announcement on progressing depolarisation and adoption of the ‘menu’ system of paying for independent financial advice, David Elms, Chief Executive of IFA Promot

 We believe everyones a winner from the FSAs plans.  IFA clients will be made fully aware up-front of the costs of their services, giving a quicker and clearer understanding of the value of that IFAs services against the whole marketplace.  Those who decide to take their banks advice will at least have access to greater choice, however going to an IFA remains the only way to obtain unbiased financial advice across the whole market of financial products. 

The increased transparency of the menu approach promises further to improve IFAs standing in consumers eyes, whilst those banks that choose to do so will benefit from offering customers a greater range of financial products.  Finally, product providers creating good quality products will also win in terms of greater demand for their products from distribution channels. 

The vital final area which the FSA must get right is disclosure how will consumers be able to differentiate between independent and multi-tied advice, and how will they be reassured that provider part-ownership of an IFA firm will not lead to bias in the advice they receive.  The FSA has talked about running a high-profile educational campaign to address all these issues given that IFAP will put over 300,000 consumers in touch with local IFAs this year alone, we would be happy to assist the FSA with this initiative.

For further information please contact:

David Elms                                       or                     Richard Winder/ Ian WIlliams

CEO                                                                           Lansons Communications  

IFA Promotion                                                           020 7294 3641 / 28 

07803 603 659                                                            richardw@lansons.com       

1.  Independent Financial Adviser Promotion

IFA Promotion was established in 1989 to promote the value and accessibility of independent financial advice to the public.  It represents over 10,000 firms of independent financial advisers across the UK and is sponsored by 27 leading financial institutions. In 2001, 265,000 consumers and businesses used IFA Promotion to find local independent financial advice.

IFA Promotions believes 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