27 June 2007
In response to the Financial Services Authority’s (FSA) review of financial distribution, Which? chief executive Peter Vicary-Smith says:
“Discussion of a new model for retail distribution is a step in the right direction as the current system is failing consumers.
“There is an inherent conflict of interests in commission based advice which can result in people being sold financial products that aren’t necessarily right for them.
“Any new model must have the best interests of the consumer at its heart. It must be made clear to people what type of advice they are receiving and how they are paying for it.”
-Ends-
According to a Which? report from September 2006, the number of financial advisors the number of financial advisors that failed to pass the benchmark for good advice were 66 per cent for Independent Financial Advisors (IFA) and 84 per cent for tied financial advisors.