Moves to restore consumer confidence in long term savings have been welcomed by the Association of Investment Trust companies (AITC).
In particular, when it comes to improving distribution, unbundling the cost of advice from the cost of the product combined with a programme of financial education is seen by the Association as being the most effective route.
By unbundling advice costs advisers would have to demonstrate their advice adds value according to the Association, thereby making it the single biggest step that could be taken to raise advice standards.
The investment trust industry has an obvious interest in seeing consumer confidence restored following the split capital investment trust investor losses.
Annabel Brodie-Smith, communications director at the AITC says: "To restore confidence it is vital the financial services industry puts its house in order by putting consumer interests first. This important report is a welcome first step towards restoring investor confidence in the financial services industry."IFAonline
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