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ABI Consumers will benefit from the right reforms to financial advice

The ABI (Association of British Insurers) has today published its response to the FSA's interim feedback statement on the Retail Distribution Review. If the right outcome is reached, the RDR should lead to a real improvement in the way customers access and pay for financial advice.

Stephen Haddrill, the ABI's Director General, said:

"We have a great opportunity to improve financial advice for those who currently use it, and to widen access to customers who currently do not get it. Improving access to advice, and raising confidence in those who give it, will get more people saving for the long-term, protecting their finances and securing the best value income in retirement.

"The FSA is on the right track with its proposals for clearer payment structures for advisers, and increased professionalism. But it must rethink its ideas on who will be authorised to provide financial advice. We believe that all suitably professional and transparently remunerated advisers should be allowed to provide advice and give product recommendations - not just those who offer products from the whole market. We must not risk reducing consumer access to high quality advice by restricting its supply.

"We could be on the verge of a revolution in the delivery of financial advice and products to consumers. Ultimately, this will benefit everyone, most importantly consumers. It is crucial that the FSA take the right decisions now, to ensure these reforms really work."

Last updated 01/07/2016