Brokers urged to contribute to advice review

The Personal Finance Society (PFS) is urging advisers to contribute to the Treasury's Financial Advice Market Review.

It said this is a unique opportunity for the advice profession to influence the next phase of evolutionary change required to meet the public’s financial planning needs.

PFS chief executive Keith Richards wrote to the Chancellor in early July to request a government-backed review in the wake of member reaction to the significant hikes in regulatory levies.

He subsequently met with economic secretary to the Treasury Harriett Baldwin and reported to members that the government was committed to reducing the negative impact of regulation.

Richards said the review will enable the advice sector to exert an influence, if they approach it in a balanced and professional manner.

“As the review is government initiated, it represents a genuine opportunity for advisers to help shape the changes for the good of the public and profession alike.

“It is a clear indication the government recognises that the current cost and unlimited liability is impacting on all models of regulated advice and restricting the innovation of low cost entry solutions.”

Richardson said the Treasury understands that spiralling regulatory costs make it difficult for many existing firms to stay in business, which hits public access to advice. "It also acts as a deterrent to those contemplating entering the market.”

Pension freedom reforms have left many consumers frustrated over their inability to obtain much-needed advice, he said