Lord Hunt, Chairman of the Association of Independent Financial Advisers (AIFA) has suggested t...
Lord Hunt, Chairman of the Association of Independent Financial Advisers (AIFA) has suggested that everyone should move away from "...loose talk about a one per cent world."
Hunt, speaking at AIFA's annual dinner yesterday, said: "This slogan - and it is little more than that - should be replaced by a more realistic appraisal of what it actually costs to produce and advise on products. This is not a plea for opaque and high charges; simply for the pricing of goods and services to reflect their cost and value, not an arbitrary figure."
Hunt also referred to the debate on polarisation, pleading to those who will decide its future shape to keep to the forefront of their minds the consequences of disrupting the market for advice.
He explained: "The focus must not move from getting advice to those who need it to a scramble for distribution. The many positive developments in the market over the past years should not be lost in a reversion to sales-based, not advice based, behaviour."
When reviewing the rules on polarisation, Hunt urged policymakers to view getting advice to those who need it as a priority. He said: "The focus of the public policy makers should shift towards devising ways by which advice can be made available. This means revisiting some of the regulations surrounding the giving of advice. It means changing some of the mood music so that advice is acknowledged as being at the heart of financial provision."
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