The Retail Distribution Review (RDR) could give advisers the opportunity to regulate themselves through professional bodies, says Axa.
The provider says allowing adviser bodies, such as the Association of Independent Financial Advisers (AIFA), to disbar members who violate codes of ethics would raise consumer confidence in financial advice.
It says it would complement proposals in the RDR to require advisers wishing to call themselves ‘independent’ to achieve more qualifications.
The comments precede Axa’s RDR response, due in December.
Steve Folkard, head of pensions and savings policy at Axa, tells IFAonline: “There’s a lack of consumer confidence and trust. We have to establish credibility. Advisers are missing opportunities because there are those who don’t take advice because they don’t trust it.
“Just being qualified doesn’t guarantee a good enough outcome for the consumer. If you look at professions taken seriously by the public, they all have professional bodies.”
He says bodies would need better resources to monitor members and demonstrate they can take effective action.
Organisations could raise membership fees if the FSA made membership mandatory which would fund the scheme, he adds.
To comment on this story contact:
Tel: 020 7034 2679
E-mail: [email protected]
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till