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CII: RDR could help turn 14 million to financial advice

by Jun Merrett on Feb 18, 2013 at 09:38

CII: RDR could help turn 14 million to financial advice

The retail distribution review (RDR) could lead to 14 million consumers seeking financial advice, according to the Chartered Insurance Institute (CII).

A CII survey of 2,010 consumers conducted in January, found that there were 14 million consumers who could afford to invest and might want to receive advice if the benefits of the RDR were better communicated.

The research showed that the 14 million consumers had not previously taken financial advice due to a lack of trust, a preference to use other sources, had not considered advice or had been self-advising.

The CII also said that around five million people who had previously dismissed financial advice were now reconsidering it because of the RDR.

The survey showed that only half the customers who have received advice know about the changes brought about by the RDR.

Laurence Baxter (pictured), head of policy and research at the CII, said more needed to be done to tell the general public about the RDR.

'Although there has been progress since 2011, a better communication plan is needed if the market is really going to benefit from improved public trust and confidence which was a central objective of the RDR.

'Our research has revealed a great opportunity for financial planners among the unadvised population, to the tune of five-14 million new consumers over time.

'It must not be forgotten that the impact of the RDR has and will be significant, but the end result will be a financial advice market that is more professional and trustworthy, with higher qualified advisers providing more transparent services and remuneration practices.'

62 comments so far. Why not have your say?

Jonathan Kirby

Feb 18, 2013 at 09:49

Wonderful, but as the ever increasing burden of red tape means we don't have enough time to deal with our existing clients, and the number of advisers has been slashed as a result of the misguided RDR, who will be able to help these new people, many of whom will presumably start in a small way.

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Brian Brotherton

Feb 18, 2013 at 10:16

I thinks somebody believes in their own spin and looking after there own organisations best interest.

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JM Keynes

Feb 18, 2013 at 10:16

Yeah, right!

The only additional interest resulting from RDR will be the increase in mystery shoppers (FSA staff released form the RDR project.)

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Sascha K

Feb 18, 2013 at 10:18

"A CII survey of 2,010 consumers conducted in January, found that there were 14 million consumers who..."

Teehee.

Kudos to the article writer, I don't know if they were deliberately trying to show up the absurdity of surveys with this opening line, but it's very well done regardless.

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Ben Middleton via mobile

Feb 18, 2013 at 10:18

What about the millions who now can't afford advice due to RDR, funny how the Cii have made lots of money out of RDR and now saying how amazing it is, how strange!!

How about they pass these leads onto me I can pass my details to them and they can do something useful for a change rather than monopolise our industry and come out with these unreliable and pathetic statements!

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Stevie P

Feb 18, 2013 at 10:20

An how many of those surveyed were advised how much they may need to pay for "advice" & were then prepared to do so ?

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Alasdair Sampson (FinServ Solicitor)

Feb 18, 2013 at 10:22

8 out of 10 cats.....

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Bob Donaldson

Feb 18, 2013 at 10:27

God don't you just love these surveys! What a load of tosh speak to the coal face and see how much spare capacity advisors have and how many of them want to deal with individuals who are not prepared to pay our fees.

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Luxemburg3r

Feb 18, 2013 at 10:31

@ Jonathan Kirby

One would hope a new breed of highly trained, professional financial advisers, without the cynicism and without the legacy will introduce some fresh thinking and enthusiasm. Goodness knows your industry needs some.

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Mike Morley

Feb 18, 2013 at 10:31

These will no doubt be the 14 million prepared to stump up £15 an hour for the advice that they seek! Meanwhile back in the real world.........................

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Terence O'Halloran

Feb 18, 2013 at 10:32

Planet, live on and Which? spring to mind.

Ask 2000 people and save the cost of the next general election.

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Barry Barnes

Feb 18, 2013 at 10:34

Deluded. Neither I do not need level 4 to understand that!

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Chris Miller

Feb 18, 2013 at 10:36

This guff is generated by CII numbers-men who have never even been advisers.

Much of what he said is also nothing new.

'it must not be fogotten that the immpact of RDR has and will be significant'. Well I never, I'd simply hadn't realised.....not.

Hang on a minute, let me lean over and extract an egg from my carton, I'll suck on it.......just like my grandmother taught me.

I'd be much more interested as a PAYING member to see them use their resources ( OUR SUBS) on actual work such as lobbying to deal with the longstop injustice, or even reduce our regulatory fees as some sort of payoff for the cost and effort of meeting the crippling RDR demands. But then, that's probably a bit too prosaic for the high and mighty at CII/PFS towers.

Perhaps some policy makers from the CII would like to demonstrate their actual work to date on these areas that actaully have real relevance to those of us who WORK at being IFAs, rather than trying to be virtual IFAs.

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Alex McLaughlan

Feb 18, 2013 at 10:37

It would be useful if the CII could also let us see the actual survey.

"Could lead to". "Might want to".

Just the kind of thing you might hear at the end of a sale-less day.

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paolo standerwick

Feb 18, 2013 at 10:43

What do client shave to read when dealing with an adviser?

1) Key facts

2)KDF

3)KFI

4)Client agreement

5)Suitability letter

6)Cooling off notices

this excludes any back office paperwork and compliants docs.

(erm have I fogotten something? and this is for one piece of business)

Anyway when was the last time someone read a document containg 60-80 pages? Probably never.

That's why regulations and RDR is for the benefit od employees of the regulators and not the consumer.

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John Smyth 3

Feb 18, 2013 at 10:44

Are they kidding themselves or trying to kid us?

None of their people have ever had a real fees conversation with a member of the general public in their working lives. The CII always has and always will be stuffed full of theorist eggheads, mostly ex-insurance company employees who like inventining new examinations and who have never sat face to face with a member of the public.

Time will tell just how prepared the general public are to pay fees and how many fall into the arms of banks, building societies and insurance/assurance companies direct sales forces.

I am also getting the impression that insurance/assurance companies are not giving the full benefit of the savings in commission non-payment back to the public. Most of it will be going into their bottom line. Nice acheivement FSA.

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Ian Lees

Feb 18, 2013 at 10:46

It is interesting that the Government did not think to ask, "People ", the voting public . . . if they wanted to pay for advice out of their own pockets ? before entering into their Retail Destruction Review ! Now according to crap surveys 14 Million people " May " wish some financial advice ? When banks who have been swindling people out of their life savings . . . ar eto used to " educate children " , on financial planning advice . . . those poor little sods ! Lastly, for those advisers who have lost their jobs through the CON servatives - destroying small businesses ( or micro businesses as described by insolvent Bank of Scotland i.e with turnover of less than £ 2 Million ), and Ian duncan- Smith confirming that ratehr than claim benenfits - everyone should be willing to reduce themselves to be shelf stackers in Poundland ? However, one could go so much lower - and become an MP fiddle expenses - and lie about anyone driving ?

Next auto emnrolment for the vulnerable and lower paid - with the administrative burden and the high charges for Employers - whose businesses have been deficated by lack of leadership in Government - and their refusal to take their legal duties and their legal responsilities seriously. I suppose they just want to swing like Boris in his harness, or set up Boris Island . . . or develop a runway . . . with more runaway finances - paid for out of tax payers money - without research without controls and without governance. No wonder Scotland wants Independance !

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Bob the Jock

Feb 18, 2013 at 10:47

Before we know it they will be reporting that 7/8ths of the UK population don't understand fractions!

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John Phillips

Feb 18, 2013 at 10:49

Better open up the office ready for the rush!! Pity there are only a few advisers left to deal with this onslaught of financial advice seekers. Hope they bring plenty of cash as I don't take cheques as it might require me to have a consumer credit licence.

Did you hear that the FSA have recently band a IFA in Surry, they found he was over 55% horse and his diploma came from “Cantering College”.

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Jonathan Kirby

Feb 18, 2013 at 10:49

@ Luxemburg3r

There aren't any new people to speak of coming in.

What is particularly sad is that financial services as a career is contracting all the time as traditional routes have closed.

In 2011 Citywire announced the first degree in financial planning with an intake of 25 students. I have seen nothing since and as all bright school leavers will go to Uni, their career paths will progress in other directions.

Cynicism is born out of realism as you would know if you had to put up with what IFAs do.

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Alan Lakey

Feb 18, 2013 at 10:50

Theory over practice is one of the main reasons this industry is in jeopardy

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John Phillips

Feb 18, 2013 at 10:51

@ Bob The Jock

It's the other 3/8ths I'm worried about.

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Ian Lees

Feb 18, 2013 at 10:54

@Jonathon. . these students are being blanket advised . . . by the Banks . . . who are empty, or as we call them . . . . . Blankety Banks !

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Anitaki

Feb 18, 2013 at 10:54

Yet another survey, believed only by those who paid to get the results they wanted

There were once two groups of turkeys. One group was told that Christmas time would see their demise, but the other group was told that Christmas was a time for partying and extra food. Guess which group (in a survey) voted to have Christmas twice a year.

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Alasdair Sampson (FinServ Solicitor)

Feb 18, 2013 at 10:56

@ Ian Lees

Some of us north of the border, and I hope an overwhelming majority, are happy with the Union Flag just the way it is.

And if we decided to fly the Saltire instead of the Union Flag what makes you think that our brand of numpty regulatory would be any less numptyish that your brand of numpty regulator?

Numptyness knows no borders.

@ Alex McLaughlin

You seem to be missing the whole point of RDR.

The regime that you live and work in has been veering away from “sales” for almost 30 years now towards professional advice……I suggest that you don’t make public comments about “sale-less days” as even the numpty regulators we currently have will be able to work out that you have not yet grasped the point.

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David Ross

Feb 18, 2013 at 11:02

Here's a link to the report:

http://www.cii.co.uk/media/4230665/cii_issue_paper_improving_trust_in_financial_advice_15feb2013.pdf

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John Smyth 3

Feb 18, 2013 at 11:06

@ Ian Lees

We are not even able to manage auto enrolment ourselves. It had to be farmed out to an Indian company Tata.

You forgot to mention the new bedrooms tax.

Disabled man aged 60 who is told he is fit to work, has benefits reduced, then because he is living in a 2 bedroom flat is told he is also going to have his housing benefit reduced despite the fact that the council do not have any 1 bedroom flats for him to move into.

Meanwhile the pay gap between the high ups and the low downs continues to grow. The banking speculaters, politicians and quango heads continue paying themselves fortunes.

Oh how low has our country stooped!!!!

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Solomon

Feb 18, 2013 at 11:09

Spin, Spin and more Spin!

The sad truth is that, at a time when the population really needs the benefit of financial advice, the regulators in collusion with the CII, have alienated the vast majority of consumers that cannot pay for advice. The Insurance giants grew up on Industrial Branch policies by serving the working population but over the past 25 years, they have slowly turned their backs on these very people, with RDR being the final step. I am fully aware that there were (and still are) some dubious practices, but in the main the provision of life cover, savings and investment products for the general population was there for all that wanted it. This has now all but disappeared.

I keep asking myself who will be the winner from these changes?

1st Jan 2013 will go down in history as the day when the provision of Financial Advice became exclusively for those with the means to afford it. Shameful.

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Smudger 2

Feb 18, 2013 at 11:10

Waiter, I have finished all of my RDR, can I have another plate of complete and utter b*******

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John Burchett

Feb 18, 2013 at 11:19

Amusing!

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Derek Gair

Feb 18, 2013 at 11:20

Another know all - who knows ABSOLUTELY nothing.

Still if the CII say it is so then it must be true - NOT !!!

I cant be the only one who is fed up to the back teeth with theorists, overqualified CFP's with no clients who eat beans every night, and all the other assorted pompous 'EXPERTS' telling everyone else how it all works - ALL THE GEAR AND ABSOLIUTELY NO IDEA springs to mind !!!

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John Invest

Feb 18, 2013 at 11:25

Luxemborg 3r:- A survey by the FSA last week showed that only 1% of advisers were aged 30 or under clearly demonstarting that no new people are being attracted to the industry.

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Ian Lees

Feb 18, 2013 at 11:31

In my opinion the REAL TRUTH is we have an incompetent government - who really have been negligent in refusing to deal with pensions, over DECADES are refusing to deal with the current recession - and are attempting to " talk their way out of recession " by giving false hope - and parcels of LIES AND DAMMED LIES - and backed up by incorrect statistics. These on the basis we are all stupid - and the Gov't obsession with non disclosure - is tantamount to treason. Clealry printing money like they did in Germany in 1929 - or as dave cameron calls it " quantitive easing ", REALLY IS NOT WORKING - and the ground is ripe and fertile - for Galloping Inflation. This will help George Osborne - with galloping inflation ( alledegedly - the new name for a tesco burger ? ) - the debts of Labour and the failures of CCON servatives - will be wiped out - after abusing tax payers money. The nationalisation of LloydsToxic Swindling Bank , RBS - the Robbing Bank of Scotland - and Barclays banking contolled form the middle east ( with the assistance of Bob Diamond - adviser and Sir Hector Slants another adviser ) - will see increased corruption - and the fiddling of Libor against consumers . . .will be shown to be a minimal swindle compared with what has yet to come !

It does demonstrate that there is more horsetrading in Government - ie more horsemeat than real BEEF in Government or their quangos for corruption - the FSA , the FCA or the Fickle Ombudsman Services - to Banks !

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Ian Lees

Feb 18, 2013 at 11:38

@John Smythe 3 . . like my ex scottish wioodws pension farmed ot to Tata . . . as I had to say to my scottish widows final salary pension Ta Ta ! ripped of by Trustees - who really should know better . Clealry with ex Aegon and TSB high level officers - looking to find a solution they can sell - a product to fiddle the commissions - they have missed the point. The point all good advisers do . . . is they assist with Financial Planning, working out income and expenditure - calculating cash flow forecasts - rather than the robbing swindling bank employees - who destroy customers finances, by non disclosure - and lack of commitment - to customer service - or proper legal, or professional advice.

Thes poor wage slaves - who have to pas custoemrs names and addresses - to the bank adviser by their "pimps employers ", the directors - and their abuse of the VISA CARD - removing financial control from customers - to the tardy bank employee e.g Paul Springer St Albans LloydsTSB St Peters Street St Albans - and his Finance Director George Culmer.

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Solomon

Feb 18, 2013 at 11:40

@ Ian Lees. Don't mince your words. Say what you really feel!

I agree with the majority of what you've said. Question is; how do we change it?

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Ian Lees

Feb 18, 2013 at 11:53

@ Alisdair Sampson . . . for the benefit of your knowledge . . . . I have been working as a fee based adivser initially since 2003 and more fully since 2008. We operate in an Independent way , not relying on the " sales opportunites " or crumbs of a solicitors firm . . . but with professionals - who are free to use any adviser they wish. The restrictions of working in Scotland especially with estate agents - where scottish solicitors are most active . . . means the restrictions under RDR - do not work for the public in general - or for the common man. . or woman . . . the restictions placed under RDR were never discussed with the public as far as I am aware. The RDR like the NHS Trusts do NOT WORK, and the " numpty's " as you call them . . . will be not be able to make this system work . . . as we have already seen the termination of so many . . .under RSR. The replacement of advisers from ex bank advisers thrown out - to fill the gaps , have littel or no experience in finding customers, and like solicitors practices and national brokers rely on being served up with " leads", to flog one product or another. The RDR is all about Financial Planning - not product flogging !

Many people are unwilling to pay directly for products - check any newspapers top read about commissions ! Only the few will be able to afford Financial Planning . . . I hope your solicitors embrace Financial Planning . . . especially with the many changes to the Legal Services ( already implemented in Scotland ) . . . but watch out for Eddie Stobbart Legal Servces - and many other American companies - who are really great at selling their services, highly profitable etc. For reference you may not be old enough to remeber the Stuart Wyse and Ogilvy estate agents ( before being purchased by the GA in Perth ) - but solicitors ahd to amend their ways - and in Scotland started their own wee conduits for protectionsist business - The Solicitors Property Centres, of which most towns have one. ESP and Au Revoir

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The Rumpo Kid

Feb 18, 2013 at 11:56

I've seen better surveys on Family Fortunes.

Les Dennis: 'Name an organisation which doesn't know its RDR from its elbow'.

Don't all rush at once with the answer...

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Julian Stevens

Feb 18, 2013 at 12:05

Mis-prioritised and unregulated regulation isn't the only thing that's pushing up the cost of advice to levels that either:-

1. clients will be reluctant to pay or which will be

2. inadequate to cover the costs of the work involved for the intermediary.

It's the generally appalling standards of service from most providers. I've just phoned a well known provider and after 15 minutes on hold eventually gave up. No apology, no call back facility, no indication as to where I might be in the queue. L&G if you're wondering.

I then phoned another equally well known provider and, after pressing various buttons for this option and that, was once again put on hold for several minutes, though in this case there was eventually a call-back option and somebody did actually call me back within five minutes or so. But generally, it's desperately hard (and time-consuming) going, isn't it?

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Ian Lees

Feb 18, 2013 at 12:07

Hello Mr Rumple . . . is RDR not " FamilY Mis- Fortunes ", or Missed Fortunes . . . should Les Dennis get a knighthood for services rendered . . . or shoul HE get the job at Barclays ?

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Alasdair Sampson (FinServ Solicitor)

Feb 18, 2013 at 12:22

@ Ian Lees

Not entirely sure at whom the last rant was directed.....don't think it was all at me!

Sadly, I am old enough to remember when there were no estate agents in Scotland, the first of whom was really the late Jim Davidson whose business was later acquired by Stuart Wyse Ogilvie.

My point was simply that referring to "sales" is this RDR enlightened age may not be the most prudent expression for an IFA to use as it may give the numpties in the FSA the idea that the IFA had not embraced the new regime.

Personally, I am delighted to have got out of main stream private client/conveyancing services - but I do take your point that the new players in the market will have an impact as they sell their services.

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John Invest

Feb 18, 2013 at 12:25

Julian Stevens:- Yes you are absolutely right it is very hard dealing with most p;roviders now as they have made so many of their staff redundant. Also you need to be very careful when dealing with certain legacy products. One well known investment company owned by a major insurer is not faciultating adviser charging on it's existing ISA's. If the client increments their ISA then you will have to charge the client directly for your advice / service. However here is the real sting in the tail the proivder still makes the same initial charge as when they used to pay us commission despite the fact that they now pay us nothing. Another great example of clients being disadvantaged under RDR.

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Ian Lees

Feb 18, 2013 at 12:27

Apparently L& G ( who I have not heard form snce 1998 - are apparently getting lots of new business from their " Hint ter Net Hoperations " . It appears they must be overloaded with people wishing to delve their digits into the many and various options at L&G. I understand that sometimes - just sometimes there is a glitch in their system - and someone gets through ! . . . . or am I not convinced. I have heard nothing from L& G since 1998 - no service, no contact , no products we might rely on . . . . So how could consumers TRUST them to act with any serious level of professionalism or integrity ? I wonder who the first insurance company might be - who is interested in New Business ? or developing a business with an adviser . . . restricted or tied ? As insurance is BUILT ON TRUST . . . the product providers -- and the bank product floggers have abused their TRUST, misused their TRUST - by scouring through client bank accounts - to assess the viability of flogging ANY PRODUCT - with the blessing of the FSA , as the teh Protectionsist Services - for consistent and persistent Rogue Traders i.e Bank Directors - and their wage slaves or as we call them employees .

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Ian Lees

Feb 18, 2013 at 12:45

@ Alisadair . . . it would appear we have much in the way of " common ground", me being " common ". when you look to the whole fiasco . . . the people, the voting public, the consumers . . . are the ones losing out . . . through the useless FSA ( who cannot even identify horsemeat in burgers, or findus ready meals - the whole thing is a Bolognaise sauce ). I am a sales man ! I sell advice . . . but the purists apparently " Do Not Sell ! " Why ? Solicitors offer advice . . often professional advice - but only to the few in the main. If we look to financial planning for our customers - surely we have to PROTECT THEIR LIFESTYLE in the first instance ! PROTECT THEIR FAMILY - keep their families together ! Using Faily income benefit - to provide regular finance in times of great distress - and more financial distress - from the misery from banks who have been overlending - misselling - put simply SWINDLING CONSUMERS - and basically destroying family finances - for their banks employees personal commissions - and those of their employers ! All permitted investmetns under FSA Rules ! ? !

Many customers do not wish to see the amount of commission generated - safe in the knowledge - it has not come out f their own pockets. If it is identified, the client informed - and they know they are being protected - and why ! I am extremely passionate about looking after my customers - unlike the banks and large tardy salesforces - who persist in the perscution of their clients and their parasitic sales flogging of unsuitable products . Put simply they do NOT do the JOB Properly . . . these are the parasites who feed on the cusotmer client banks - rather than provide a process and identify areas of concern for customers - and help them address them - and be remunerated accordingly. Alasdair I m anot being pointed at you on a personal level - but at the system which has failed consumers for generations . This as the result of the refusal of those in Power - to act with professionaism or integrity - or do their JOB PROPERLY

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Anitaki

Feb 18, 2013 at 13:05

Well said Ian

A few years ago, l lost a joint-life life & critical illness sale, purely because of commission disclosure. The 'prospect' thought the commission was too high and subsequently went to his bank who sold him a much cheaper term (life only) policy. But for commission disclosure, he would have been very happy with the policy that l had presented to him. His wife subsequently got breast cancer, so of course he has had no payout. Would the FSA care to comment on how their meddling has helped these people??

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John Phillips

Feb 18, 2013 at 13:20

@Anitaki

Plenty of cases where cost has been more important to the consumer than benefit. I used to ask how much value would you put on this policy and my advice, if it were available to you the day after a major CI or the death of your Husband / Wife, Business Partner etc. Also I have had policies cancelled in favour of a cheaper option or where the client has been advised not to disclose health related problems. You can't win them all however I now have a client bank of people who value my advice and trust me implicitly with their financial wellbeing. I’m an Adviser first but sell the need and the ideas to my clients in order to make a living.

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Andy King

Feb 18, 2013 at 13:21

14 million to seek out advice ??

Pigs might fly first methinks ??

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Anitaki

Feb 18, 2013 at 13:31

Truly John, Cost was not the issue

And l could have provided a policy with exactly the same benefits as that sold by the bank for about 55% of the one the bank sold them. Commission was the only issue - if l'd cut the commission by about 50%, that would only have made a difference of about £3 per month to the premium! No, for some reason, some people feel we should work for about £100 a day, out of which we should carry our petrol costs etc.. Commission disclosure caused this couple not to have a C.I. policy, and the FSA meddlers are directly responsible for that.

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Ian Lees

Feb 18, 2013 at 13:57

@Anitaki . . . I fear you have hit the nail on the hear of the Retails destruction Review. . . the bank ( or the cartel of banks the big three ) . Insurance company's as product providers - need to control the volume of income as well as the diversification to theri various products. Without this they become insolvent and have to be bailed out by . . the bank . . . who in turn have to be bailed out or nationalised by the tax payer. Insurance companies - who have destoyed their introducers - i.e agents - and IFA's who now have Terms of Business for engagement - with their client - the insolvent insurance companies have lost control - their power diminished. Unsubstantiated claims that IFA's were ( or are ) not professional nor qualified are being used to oust all IFA out - whilst banks turf out their incompetent and high costs salesmen and women - who are given leads - we call it shooting fish in the barrell ! Flogging products which banks require to be sold - to validate their product and boost their bonuses.

However, with so many bank advisers thrown out - they will fill up the void left by professional IFA's - until they realise - the reason fthey were selling for the bank - is they are not capable of finding clients - and when they do the normal high costs associated with bank advice - is not competitive - in the real world. However, the Trustees of these reckless banks - can still control their ex employees and wage slaves - becasue like scottish Widows the Trustees can refuse to pay their pensions . . . this is what happened to me ! this is what happened to Natwest managers - who wanted to give advice on how to reduce bank charges - RBS /Natwest confirmed to these unemployed staff - they would see their pensions cut ! These ex bank advisers are controlled just as much as they ever were - becasue of their total reliance on being paid their pension - that will not change under auto enrolment - and the banks evicted employees , will become self employed administrators for the insolvent banks.

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Terence O'Halloran

Feb 18, 2013 at 14:05

@Anataki- you are quite right. I also had a headmaster pull out of a whole life sale even though he was getting a rebate of his fees!

I have recently sent an invoice for payment to David Kenmir late of FSA Head of Marketing requesting a personal cheque for a recently widowed mother of three.

He thought it was good practice to highlight endowment performance projections. The policy would have matured in 2024. Better still it would have paid a critical illness claim (£41,000) in 2007. Failing that the death claim in 2012. The clients cancelled the policy 6 years into its term for £4800 because of an FSA inspired shortfall notice. I hope that he has the guts to pay for his mistakes as he expects us to personally pay for ours.

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Philip Wise

Feb 18, 2013 at 14:07

Our experience is that there has been a big rise in demand for financial advice this year. Our problem is that we cant get enough, good advisers to satisfy the demand. There was a skills shortage in financial advice and planning before RDR, and the increase in demand has worsened that shortage.

No problems with people paying the right price for advice, or increasing fees to cover the increasing costs of regulation.

Are you all so negative coz its Monday?

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Terence O'Halloran

Feb 18, 2013 at 14:24

@ Phil Wize When you cannot, or perhaps, will not see the wood for the trees, every day is sunny. Just review what you wrote.

"demand has worsened that shortage".

What is a GOOD ADVISER PHIL: DISCUSS. AND IN WHO'S OPINION! Yours?

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John Phillips

Feb 18, 2013 at 15:08

@Anitaki

That is my point the client thought it was costing them £1,500.00 for the advice, they were happy with the premium until they were aware that my company were being paid £1,500.00.

Commission discloser has the effect of making clients decide on what they are paying for the advice and not the whole product / service.

Cruise liner breaks down in the middle of the ocean, Capt calls for help and is told there is an engineer who, for £250,000 will guarantee to get his ship running in 30 mins of being taken on board. Capt says please send for him immediately.

The Engineer lands on the boats heliport and is shown to the engine room the engines are fired up but won’t start. The Engineer walks up and down the engine rooms listening to the noises each attempt makes in the engine compartment, after 25 mins he turns to the chief boiler room mechanic and asks for a large sledge hammer, walks up to the engine casing and hits it 4 times and all of a sudden the engine bursts into life.

When he asks to be paid the Captain says, what do you think I’m going to pay you for hitting my engines with a sledge hammer?

No says the Engineer it is for knowing where to hit, that you are going to pay me. Too few people value your knowledge.

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Jonathan Kirby

Feb 18, 2013 at 15:14

In the world of unintended consequences of RDR how about cases like this.

We have a self employed client who when he has a bit in the bank pops in with a cheque for his Standard Life PPOne.

He has just brought a cheque for £1,000. Printed out the quote and the charges are identical but the £5 or so of commission has gone so as a result of RDR which covered our postage to be snaffled by Standard Life.

In this case it really is the principle not the money, but why should the client or ourselves have to pay?

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Alasdair Sampson

Feb 18, 2013 at 15:27

@Ian Lees

We all sell advice. Whatever our profession trade job...whatever you want to call it.

I do not disagree with one iota of what you say.

The problem is one of perception - not yours, or mine, but of the FSA.

They see "sales" as meaning you're flogging a product, which is no doubt because the law, which they have a hand in drafting, call the users of your services "customers".

All the IFAs I advise have "clients", people with whom they build up a relationship of trust over years.

A "customer" buys tins of beans in a supermarket - what does it matter if they buy the Heinz beanz in Tesco or Aldi. It's all the same. And that is the perception the regulator has of IFAs.

Which is why I always advise IFAs always to refer to them as clients. It's not just pedantry, it's a difference of mindset.

You have clients whom you advise...the result of that advice process is that they buy into an investment that is right for them.

It's not the same the same as merely selling product which anyone can do.

But, sadly, that is just not how the FSA see it.

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Smithling

Feb 18, 2013 at 15:40

Could NMA please to get the CII and Hargreaves Lansdown to do a joint article on RDR and it's impact on people wanting advice.

Popcorn?

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paolo standerwick

Feb 18, 2013 at 15:43

Mindset

Adviser or what used to be called life assurance salesmen, take the business to the client. Hardly any client pro actively looks for advice. Most products in the past have been sold and sold honestly. Good hnest sales is good. Now compliance has taken over the industry and good business sales. Hence the change required is not from the IFAs, buit from the consumer who hardly ever looked to buy!!!

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Ian Lees

Feb 18, 2013 at 16:00

Our client surrendered a Bond from Scottish Widows - and the scottish widows employee - informed the branch salesman advbiser in LloydsTSB Chellmsford about the potential for a sale 9 informing LloydsTSB adviser of the amount - before it was administered ) . The LloydsTSB adviser asked the client to attend a meeting in the branch - to sell him A N Other contract ? Why ? No reaosn given . No thought as to why the client needed to sell the investment . Let us report these digustoing sales strategies employed by scottish widows - who claim to be " introducers " to clerical medical - and LloydsTSB bank employees . I believe this is a Breach of Data Protection as well as fruad and corruption in the Nationalised lloydsTSB Group - see George Culmer Finance Director .

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Philip Wise

Feb 18, 2013 at 18:07

Terry

There was more demand than supply pre RDR. Now there is more demand and less supply. So the shortage of skilled advisers is greater than it was before.

A good adviser is technically able, with an ability to communicate and sell advice and planning. Most of the time, that is too much to ask, judging by the numbers of people I've interviewed over the last couple of years. Only about 5% can calculate how much you can take out of a bond without a chargeable event. Most of the others couldnt write a grammatical sentence.

That's my opinion. I am always right though.

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Terence O'Halloran

Feb 19, 2013 at 09:40

@Philip Wise Some do and some think they do .

Judge ye not lest ye shall be judged.

95% of the financial services buying public need someone to talk to that they can understand and relate to.

I do not know the source of your interviewees, and it matters not to me, but please do not denigrate others because of your own high standards. I have met, and admired the work of, many a man from the Pru who's heart was in his job despite any grammatical or numerical flaws. They did a good job - and they are gone forever because Collette Bowe and her elite decided that the public "deserved better" by their standards rather than the expectations and standards of those that were being served.

Evolution takes time and patience, revolution is destructive and uncompromising. It is not too late for a little evolution - the revolution has destroyed a great deal.

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phil castle via mobile

Feb 19, 2013 at 17:44

whilst I can see Phil Wise point, i have to agree with Terry (probably because my soelling us bad asnd wven worse on my Nexys!)There were many people for whom tge nan from the Pru was invalyabke. Is some CIC cover better thsn NO cic? Is a will from WHS better than NO will? I worked as an IFA in 1992 for Natwest and the bank didn't write wills unless you were old enough to need their probate service in the next 5yrs. no use if u are 25 with 2 children. Consequently from 1998 I drafted wills for a lot if cliuents, several if whom died (one within 6mths) I only stopped as our offices are shared with a solicitors practice & I am 4ft from the legal executive who drafts these & LPA so they get DONE when needed not as a round2it!

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Ian Lees

Feb 19, 2013 at 18:13

Crikey I hope his spllelling was better on his Wiiilllls than it is on anti socail media ?

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John via mobile

Feb 21, 2013 at 01:01

@p wise

With an opinion like yours anyone with anything about them wouldn't want to be told what to do.

Your search will be a long one

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