Retail Distribution Review

Written evidence submitted by David Pring, Chartered Financial Planner

I have just read Hector Sants’ letter to Andrew Tyrie dated 13th December 2010 with some interest and puzzlement.

Whilst I strongly support the drive to ensure all advisers are qualified to provide the advice they are giving to their clients (as evidenced by my level of qualification) I am unable to agree with the number of advisers who will be forced to lose their livelihoods along with the support staff they employ at a time when financial advice has arguably never been more important.

The general press in this country, has, over a number of years, vilified financial services to such a degree that many people (mistakenly) do not trust the advisers who need to help them. This is especially true with the gradual withdrawal of state support for the population in retirement, who need guidance to ensure they have adequate capital to live on in retirement whilst maintaining a reasonable standard of living now.

In practical terms the FSA's view that clients are willing to pay fees for advice is flawed. I find that clients have great difficulty in bringing themselves to write a cheque for advice. This is not reflected in the FSA assertion on the impact of advice which clients will take up and will lead to fewer people receiving advice, especially those less affluent who arguably need the most help.

None of us are perfect and genuine mistakes can be made by us all, especially when viewed with the luxury of hindsight. Perhaps we should be asking the FSA about the costs of the banking crises and who's going to be fined for the lack of regulation which this failure brought about?

December 2010