He said he has seen a “significant change” in the past five years, with the industry moving from a reliance on product providers for remuneration by commission to become “more resilient” and transparent with its customers.
However, speaking at the annual dinner for members of the Association of Professional Financial Advisers (APFA) last night, John Griffith-Jones said the commonly understood meaning of the words “advice” and “guidance” have been severely stressed.
“This is an issue we have sought to address,” he added.
He said that alongside a successful transformation from a commission-based to a fee-based remuneration model, the industry had seen an “equally significant” shift towards professionalism.
“18 months on, and you all look remarkably alive and well. As it has turned out, the reforms to the at-retirement market that will come into play next year will only increase the need and value of quality financial advice from you,” he added. “We can only fully meet our objective if you do. So just like firms we must be open and transparent.”
Last week, the FCA said income drawdown is “unlikely to be suitable” for pensions under £50,000 in the current market, and called for “good value” products to fill the gap.
