Prudential is campaigning to remove the bad apples from the financial services industry, in an attempt to put more confidence back in. They will take strong action against advisers who they believe are bad for the industry, and if needed report them to the Financial Services Authority. They are hoping that the industry as a whole will be supporting them.
Our view
The answers are very simple:
1. To be an adviser you must have obtained the advanced financial planning certificate, much to the same standard as our legal and accountancy colleagues.
2. All advisers must be Independent and must offer fees and commissions only to offset fees.
3. Commissions should be set by the FSA i.e. a maximum commission for different types of contract.
4. Providers themselves should be taken to task for the incentives that they offer to inancial advisers.
At , we already do all of these things to be fairer and more transparent with clients.