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ABI cuts through the jargon of the changes to financial advice

Changes coming in at the end of the year will help consumers to have more confidence when taking financial advice. To help consumers to navigate these changes, the Association of British Insurers (ABI) has launched a guide and jargon buster to help consumers understand the new advice landscape.

The guide explains not only the overall changes but also includes a jargon buster for consumers to help explain some of the terms used in financial advice. It also outlines how a consumer could go about finding a suitable financial adviser and where to go for more information. The guide is designed to build on publications from others such as the FSA and Which?

The guide is launched as the ABI publishes the latest figures from its consumer survey, which show that just under five per cent of people are familiar with the changes to financial advice and a further 18% of people have heard something about the changes but are not sure what they mean for them.

The ABI is supportive of these changes as they should help rebuild consumer trust in financial advice and so it is important that consumers understand what is changing.

Maggie Craig, Director of Financial Conduct Regulation, ABI said:

“Terms like RDR, Level 4 qualified and adviser charge can seem like a completely alien language to people who are not familiar with them. This guide is designed to cut through the jargon and help people who need financial advice to understand the changes that are happening at the end of the year. It is important that the industry continues to support the efforts of the FSA and consumer organisations in explaining these changes to consumers”

Please see the ABI’s guide ‘Financial Advice is Changing: What it means for you’ (pdf 848kB).

Last updated 01/07/2016