Warning simplified advice poses systemic risk to IFAs

John Warburton, product director, said it is this threat which is preventing insurers from developing a simple advice proposition. Simplified advice has been generally viewed as a lighter service which will deliver an appropriate – rather than the best – outcome for clients. But Warburton said insurers are concerned the Financial Ombudsman Service (FOS) will apply the strict rules on suitability developed for individually-tailored advice to simplified processes, leaving advisers vulnerable to complaints and insurers open to accusations they had caused them. “Making simplified advic...