According to the Financial Services Authority, only four companies have so far applied for authorisation to offer basic advice.
The basic advice scheme was designed to be a lower cost, simpler process to help consumers who could not afford full independent advice to obtain stakeholder savings products. The Financial Services Authority have said that they are disappointed in the initial interest in offering basic advice, but hoped more companies would ask the regulator if they could be authorised to enter the workplace.
Our view
All advisers should be required to study, pass examinations and become professional, independent financial advisers. Basic advice is exactly that - BASIC. It should be ditched before it does too much damage.