AJ Bell has called for a regulatory review of Key Features Illustrations (KFIs), arguing they have been overlooked and in their current form are 'not fit for purpose'.
The provider said the Financial Advice Market Review (FAMR) should be widened to include a reworking of KFIs as they fail to explain both charges and products to clients effectively. Alternatively, KFIs should be abolished altogether, the provider said. The call followed in-house research suggesting 61% of advisers deemed KFIs in their current form "not fit for purpose". KFIs are given to clients alongside suitability reports to enable them to compare charges between different products in order to decide which one to purchase. They are typically several pages long. In June 2015 the...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
