The Institute of Financial Planning (IFP) has responded to the changes for polarisation with sceptic...
The Institute of Financial Planning (IFP) has responded to the changes for polarisation with scepticism, and says more emphasis should be placed on the advice rather than the product.
Nick Cann, chief executive of the Institute of Financial Planning, has accused the regulator of putting Government objectives ahead of consumer interests and says the focus needs to be on the delivery of education and IFA support in polarisation rather than on the products that will be sold.
"There needs to be some support and education in the polarisation process, and people should be able get the information they are looking for when it comes to buying a stakeholder pension. But this [changes to the polarisation rules] fuels cynicism that the Government is desperate to sell stakeholder, and the banks haven't successfully sold financial products in years, so this is their last chance to try.
"There needs to be a differentiator between advice and the sale of products, to take the confusion off consumers. It is a nightmare to understand what is independent advice anymore, and when the public is getting it.
"The new rules do make it confusing but this is where we need to turn the focus around from the product to the advice. We need to try and clarify the product situation, but it must be advice first, beating the confusion for both the adviser and the public," he adds.
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Responding to letter from Treasury Committee chair Nicky Morgan