AIFA calls for 'Law of Agency' re-instatement

In a policy paper on the Retail Distribution Review (RDR), AIFA director general Chris Cummings says those firms willing to adopt the principle of being an 'agent of the client' should be given distinct status by the FSA and rewarded by "appropriate" regulatory dividends. He adds introducing the law across financial services would help restore consumer trust in financial advice by "showing the clear legal obligations of all parties". "We believe an IFA is the only true agent of the client," Cummings says. "Only an IFA can give true advice as they are legally bound to put the best intere...