The Association of Independent Financial Advisers (AIFA) and the Association of Investment Trus...
The Association of Independent Financial Advisers (AIFA) and the Association of Investment Trust Companies (AITC) have both issued initial responses to the the Sandler Review of Medium and Long-term Retail Savings. Both organisations have urged Sandler to adopt a forward thinking outlook.
AIFA stressed the review raised a series of important questions for IFAs and their clients. It highlighted areas particularly relevant to IFAs including the bundling of advice with selling, consumer awareness of the duties owed to them by IFAs, the factors driving remuneration, whether levels of fees and commission should be regulated, and the standard of advisers' knowledge of investment issues.
Commenting on the document, Paul Smee, AIFA's Director General, said: " We hope that Mr Sandler recognises the degree of change that is already underway in this dynamic market and works with the grain of that change, rather than trying to reverse it. We hope to convince him that evolution rather than revolution will best serve an orderly market and the interests of consumers."
The AIFA stressed the outcome of this review could have a significant impact on the way in which intermediaries operate and will be preparing a full response.
Annabel Brodie-Smith, Communications Director of the Association of Investment Trust Companies said: "Consumer confidence in the retail financial industry has been dented by numerous crises - pension mis-selling, potential shortfalls in endowment mortgages and more recently the dramas at Equitable Life."
Brodie-Smith added: "It is time the retail financial industry put its house in order by putting customer interests first. This is why the AITC believes this review is essential and urges Ron Sandler to be forward thinking and radical in his review of the long-term savings industry.
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