The Association of British Insurers (ABI) has criticised the Financial Services Authority's vision for simplified advice and called for a "triage" system to assess investors' suitability for the service.
In its as yet unreleased response to the FSA's simplified advice consultation, an ABI spokesperson said the association told the regulator its vision "goes beyond what simplified advice should be".
"The FSA has set out a vision of simplified advice which we believe is actually closer to full advice, where IFAs have to look at all of a client's financial services use," they said.
Before a consumer enters into simplified advice they should be subject to a pre-filtering system to see if full advice is more appropriate, the ABI has told the FSA in its submission.
"We suggested there should be a pre-filtering process , which would give general advice about paying off debt before investing for example, and reminds them at the end of the process that there is still full advice available," said an ABI spokesperson.
The association did not suggest who within the industry would provide the pre-filtering service.
Elsewhere the ABI backed "facilitators" who would provide simplified advice, but who would not be authorised to make recommendations.
"The FSA said it will be difficult for facilitators not to stray into advice but we think it will not be that difficult," said the spokesperson.
"There is space for people who are not qualified advisers to be facilitators, provided there are systems and controls in place and proper training for them."
The ABI also warned the FSA against taking such a risk-averse approach to simplified advice that it deters any firm from offering the service.
The submission from the ABI comes after ABI statistics suggested consumers would be unwilling to pay for either full or simplified advice.
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