We are the voice of insurance and long-term savings | Contact us

ABI proposals to give consumers more transparent financial advice Industry calls for strong partnership to deliver implementation

Paying for financial advice should be made more transparent and easier to understand, according to the ABI's submission to the FSA's Retail Distribution Review, published today. The insurance industry's innovative proposals to reform financial advice include:

  • a level of professional qualification which would be the minimum to allow financial advisers to give advice;
  • the introduction of a new system of paying for advice that would replace traditional commission, called Customer Agreed Remuneration; and
  • a new regulated sales process called ‘Assisted Purchase' to help more people get affordable access to simpler financial products.

Maggie Craig, the ABI's Director of Life and Savings, said:

"The system of paying for financial advice needs to be improved. It is in the interests of customers current and potential, advisers and product providers to raise standards of service and professionalism, and to be clear about what advice is and how it is paid for.

"The insurance industry will continue to work with the FSA and others throughout 2008 as it considers all the ideas the FSA has received and puts in place final recommendations. We are confident that together we can build on the Discussion Paper to develop constructive proposals.

"We will require a strong partnership between the industry and the FSA to ensure that they are implemented."

Last updated 01/07/2016