Consumers must understand RDR jargon - CII

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It is vital consumers are consulted to ensure they understand the "industry terminology" in the regulator's Retail Distribution review, according to the Chartered Insurance Institute.

Sandy Scott, director general of the CII, says: “Most of the terminology [in the RDR] is industry terminology. "These terms need to be tested with consumers to make sure they can get their heads around them.” The FSA has proposed creating a tiered system of financial advice, which will consist of two levels of advisers providing ‘full-advice’. General financial advisers would not be as qualified as professional financial planners would, but they might have a greater range of remuneration practices, such as a commission structure. The issue has caused frustration among IFAs, who fear...

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