The Association of British Insurers (ABI) has come out strongly in favour of customer agreed remuneration, an Assisted Purchase sales process and increased IFA professionalism in its response to the RDR consultation paper.
The trade body says paying for financial advice should be made more transparent and easier to understand.
It is backing the customer agreed remuneration(CAR) model to replace traditional commission models and also wants a new regulated sales process called ‘Assisted Purchase’ to help more people get affordable access to simpler financial products.
In its response to the FSA, the ABI also highlights the need for a level of professional qualification which would be the minimum to allow financial advisers to give advice.
Maggie Craig, the ABI’s director of Life and Savings, says: “The system of paying for financial advice needs to be improved. It is in the interests of customers current and potential, advisers and product providers to raise standards of service and professionalism, and to be clear about what advice is and how it is paid for.
“The insurance industry will continue to work with the FSA and others throughout 2008 as it considers all the ideas the FSA has received and puts in place final recommendations. We are confident that together we can build on the Discussion Paper to develop constructive proposals.
“We will require a strong partnership between the industry and the FSA to ensure that they are implemented.”
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