IMA CEO sceptical on primary advice model

Although he welcomes some parts of the review such as improving standards and removing commission bias at the top end of the market, he has serious reservations on primary advice. He says: “I am more sceptical about primary advice as the concept of simple advice for simple products has never really had legs. The problem is what is a simple product? “I challenged someone at the FSA about it and they said a simple product could include something like an index tracking fund. However, such a product exposes investors to the same set of risks as an actively managed fund. It is possible to mi...