The Association of IFAs (AIFA) has welcomed an FSA proposal to introduce a single disclosure document for advisers that would replace the Menu and IDD.
Fay Goddard, deputy director general of AIFA, describes the plan as “good news for members”.
The regulator yesterday published a consultation paper outlining the proposal for the optional document as guidance. It maintained advisers are still at liberty to decide how best to present the information on costs and services to consumers.
“We support the proposal to simplify disclosure and combine the Menu and the IDD into one overarching document,” Goddard says.
“A more flexible approach to disclosure is welcome and the removal of mandatory commission tables and market averages is good news for members.”
She adds: “Consumers should be able to clearly identify the scope of the advice they are receiving; the range of services provided by a firm; and the costs of those services.
“The proposed approach allows firms to set out their services in a way which clients will understand more easily.
“We are also pleased that the FSA has based its proposals on extensive consumer research and tested the various options before making its recommendations.”
Some advisers criticised the fact the new document would be optional, but the FSA said it has to cater for those firms that “do not want to be told how” to disclose cost details to their clients.
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