Advisers reject FSA's ‘lack of trust' claim

The FSA is wrong to suggest there is a lack of trust in financial advisers amongst consumers, says AIFA.

In the regulator's Financial Risk Outlook 2009, it claimed there was a long-running history of distrust in IFAs, which would deter people from seeking advice at a time when they need it most.

The opening lines of the outlook's chapter on quality of advice say: "Low levels of consumer trust in financial advisers has been a long-running issue in the sector, partly driven by concerns over the quality of advice and service given to consumers in the past.

"This is a significant concern as it could deter consumers from seeking advice, resulting in inadequate provision for their needs."

AIFA says it welcomes the FSA's suggestions that consumers would be better off seeking financial advice from an independent professional, but it is unhappy about other parts of the report.

Director general of AIFA, Chris Cummings, says: "We seriously question the assertion in the report that there are low levels of consumer trust in the IFA profession.

"We challenge FSA to provide solid irrefutable evidence to support this opinion."

Cummings claims independent evidence shows IFAs are the most trusted financial professionals in Britain.

He says access to advice is vital in the current climate, and wants the FSA to do all it can to increase consumer access to advice services.

Contact: John Bakie, Tel: 020 7484 9805, e-mail: John.Bakie@incisivemedia.com

Have your say:

"A significant part of the problem is the FSA itself. All the time it keeps "winging on" about the the lack of trust in the advice sector it creates a self fulfilling prophecy, which is consumer and industry detriment. Many IFA's believe the FSA has an established strategy to whip the advice sector to draw attention away from its own failures: Equitable, Precipice Bonds, Final salary pension misstatements etc." Simon Webster, managing director, Facts & Figures Financial Planners Ltd.