Advice or Information?

Advice or Information?

According to the FSA, clients do not distinguish between receiving financial advice and information on the sub-prime or lifetime mortgage sector.  The regulator found despite sub-prime consumers considerable reliance on their adviser, the initial disclosure document was not prompting them to think about the level of service they might get from their intermediary.  

The FSA found both sets of consumers focused heavily on price, with sub-prime consumers concentrating particularly on initial payments.  It was also reported that the key fact illustration was useful for clarifying but not comparing products.  Senior policy advice for the Council of Mortgage Lenders, Kate Davies said “The FSA may have missed a trick in failing to incorporate the old mortgage code requirement for advised sales to include a reasons why letter into its own rules”.

Our view

We started Need An Adviser to offer clients low cost, good financial advice when buying financial services products unlike.  This is different to comparison websites who offer no advice and therefore, no protection when you choose from their list of policies.

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