Latest Financial Services Authority proposals on the cost of advice menu will add to the confusion among consumers rather than clearing the fog it was initially set out to do, warns Selestia.
Warnings comes less than a week after the regulator published Consultation Paper 04/3 Reforming Polarisation: A menu for being open with consumers in the hope the amended 'menu' would make it a bit easier for consumers to understand what they are getting for their money.
Brett Williams, managing director at Selestia, says: "It is hard to see what benefit if any last week's announcement by the FSA will have for either the adviser community or the consumer".
He continues: "This additional bureaucracy, whilst demonstrating there is evidence of consumer confusion, does not come with any compelling evidence to support the claim that these alterations and menu will provide consumer clarification. Rather the opposite. It took some time for consumers to fully understand the rules governing polarisation, just as this was becoming clear the goal posts have been moved."
Moreover, he does not believe the proposed consumer education programme - to be launched to increase the financial knowledge among people - will be work in practice as no real details on how it will work have yet been published.
Selestia is concerned the burden of this additional compliance cost will fall on the shoulders of the IFA community - a fall which would ultimately effect the consumer, the provider says.IFAonline
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