ABI backs CAR and 'Assisted Purchase' for RDR

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The Association of British Insurers (ABI) has come out strongly in favour of customer agreed remuneration, an Assisted Purchase sales process and increased IFA professionalism in its response to the RDR consultation paper.

The trade body says paying for financial advice should be made more transparent and easier to understand. It is backing the customer agreed remuneration(CAR) model to replace traditional commission models and also wants a new regulated sales process called ‘Assisted Purchase’ to help more people get affordable access to simpler financial products. In its response to the FSA, the ABI also highlights the need for a level of professional qualification which would be the minimum to allow financial advisers to give advice. Maggie Craig, the ABI’s director of Life and Savings, says: “The...

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