Consumers might not bother to read the FSA's proposed depolarisation menu because it is "overly complex" and "too cluttered", warns the Association of IFAs.
In response to the regulator’s consultation paper on ‘Reforming polarisation: a menu for being open with consumers’ , AIFA says the suggested menu is in danger of losing its key message.
It is not only too complex but it also focuses too much on costs, while it should be about value, AIFA says.
The Association supports the original concept of providing a menu of services and costs, especially, it says, as it would end ‘the myth’ that advice is free.
Paul Smee, director general of AIFA, says: “We remain convinced that the menu is the best way of providing transparency by setting the cost of advice squarely within its context."
"The FSA’s proposed version of the menu is, however, overly complex and there is a danger that it will not be read by consumers. This in turn will not meet the regulator’s objective of encouraging consumers to shop around."
"The menu has become too cluttered and, in the process, could lose its key message. There is a disproportionate focus on cost, whilst if it is to work effectively, the menu should also demonstrate value."
The regulator should be wary of trying to make the menu achieve too many objectives, Smee adds.IFAonline
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