Aviva has challenged the FSA's proposed ban on provider factoring in its response to the latest RDR consultation. The insurer argues any move to ban factoring for regular premium business will damage the UK savings market.
Publishing its response today, Aviva has rejected moves to ban provider factoring and introduce a ‘basic advice' stream.
It has also challenged FSA proposals to make providers monitor the level of charges set by advisers.
Aviva says a ban on factoring for regular premium products will make advice costs disproportionately large for consumers, and will severely damage the UK's savings market. It suggests the FSA should allow factoring, but subject to standard discount rates.
It has also rejected proposals to create a new basic advice stream, saying the solution is uneconomical for firms to operate, and says new ideas are needed to help the industry engage with consumers.
Lastly, it has called into question the FSA's proposals to force providers to monitor ‘extreme' adviser charging. It says the policy is contradictory with one of the main principles of the RDR, to remove provider influence on adviser remuneration.
Stephen Gay, director of business development at Aviva, says: "Aviva recognises that access to good financial advice is crucial to the financial wellbeing of millions of people.
"Consumer access to financial products and services is the biggest and most pressing issue facing our industry and it is crucial that the FSA delivers on its objective of ensuring that advice is easily accessible."
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