Levels of consumer trust would dramatically increase with a clear distinction between financial sale...
Levels of consumer trust would dramatically increase with a clear distinction between financial sales and advice according to the Association of IFAs (Aifa), writes Lucy Quinton.
The association is calling on the Government and the FSA to make the distinction "crystal clear", according to Aifa director general Chris Cummings.
Research conducted on behalf of Aifa by YouGov found 81% of people surveyed believed that knowing whether they were being sold a product or advised on one was important to build the level of trust in banks, building societies, life companies, IFAs and other financial organisations.
Other key findings from the research were that 60% of people would be likely to purchase policies with 'product information' only and take responsibility for the buying decision.
The report dubbed 'Consumer Trust in Financial Services', will be sent to the FSA and The Treasury in a bid to urge them to make the distinction clearer when it publishes the Retail Distribution Review statement in October.
Matt Morris, policy adviser at LifeSearch, said: "People rarely know if they are being advised or not and, if people do not take advice, they cannot complain to the Financial Ombudsman Service about being mis-sold a policy."
He added: "I think non-advisers should definitely make it clearer to customers over the phone and on their websites that they are not giving any advice. This will stop consumer confusion and should boost trust in the industry."
Simon Clamp, managing director of UK sales, marketing and UK distribution at Friends Provident, agreed. "It is important we are as clear as we can be so that consumers know what products they are getting and how they are getting them".
On a positive note, 86% of those who had had dealings with IFAs in the past three years rated their services as fairly or extremely good.
