RDR: Advice market 'should be split in two' - FSA

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The FSA this morning landed the first bombshell of the Retail Distribution Review - suggesting the regulation advice market should be split in two.

The regulator’s first discussion paper says the market might be better served if consumers could choose between receiving ‘professional financial planning’, delivered by highly qualified advisers, and ‘primary advice’. The latter would involve providing advice on more “straightforward” needs using simple products. The FSA says this advice would be “less costly and more easily explained to a consumer than full professional financial planning and advisory services.” The idea follows consultation with a number of trade and industry bodies. The FSA will leave its ideas with the advice and...

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