IFA brand is 'irretrievably damaged', says Johnson

Nicola Brittain
clock

The IFA label represents an "irretrievably damaged brand" and should be "consigned to history", according to a pensions report released today.

Titled Put the Saver First and written by pensions analyst Michael Johnson, the report argues that IFAs should forget about "advice" and focus on "financial planning".

The report, which has been reviewed by Conservative and Labour peers, aims to catalyse a savings culture in the UK, a shift it argues is currently impeded by an under-performing and partially dysfunctional retirement savings industry.

It argues that the UK's household savings ratio (HSR) which averages just 6% (compared with a European ratio of 15%) is low in part because of widespread public enmity towards the industry where renumerations have been excessive and returns have fallen.

To attempt the address this issue, the paper argues that independent financial advisers should move from thinking about "advice" to "financial planning."

Second, it argued that financial planners should be sub-categorised in a way that describes what they actually do - this may be related to the type of service they offer or the products they deal with.

In addition, the report said that the financial adviser community should set its sights on attaining QCF Level 6 if it wants to be perceived as truly professional and respected on a par with accountants and lawyers.

This article continues...

 

More on Adviser / Broking

Best Insurance launches WhatsApp application service

Best Insurance launches WhatsApp application service

ASU insurance will be the first product available

Jaskeet Briah
clock 29 October 2024 • 2 min read
Indexation calculation

Indexation calculation

How to differentiate providers

Alan Lakey
clock 25 October 2024 • 3 min read
COVER Women in Protection and Health Awards 2025 launched

COVER Women in Protection and Health Awards 2025 launched

Awards open for nominations

COVER
clock 22 October 2024 • 2 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read