Some debtors in the UK may find themselves at a disadvantage if the Financial Services Authority’s Retail Distribution Review (RDR)’s proposals are implemented in 2012, it has been suggested.
While insurance group Aviva believes that rules such as the separation of costs relating to advice and to products will be beneficial in the long term, director of business development with the company Stephen Gay observed that some of the alterations could make it “more difficult for middle Britain to get financial advice”.
He noted that by improving the quality of advice available, the costs of offering such services will also rise and, while some advisors will leave the industry, others who remain “are likely to adopt business models to service fewer and wealthier clients”.
Mr Gay added that public access to financial products “is the biggest and most pressing issue” currently facing the sector.
The FSA’s consultation period is due to come to a close on October 30th. In its documentation, the organisation set out three measures considered essential to improving relationships between consumers and the industry.
These were increasing professional standards, improving transparency and addressing how adviser remuneration can distort outcomes.
By Sarah Adie