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In a report published ahead of the third reading of the Financial Services Bill, The Financial Services Consumer Panel (FSCP), an independent pressure group, on Tuesday outlined measures to remedy the effects of the Retail Distribution Review (RDR) which, it argues, could create an “advice gap” for the bulk of consumers who cannot afford upfront payments.
Adam Phillips, Consumer Panel Chair, commented:
"Over the next year, Parliament is set to consider many aspects of financial services. However, advice to enable consumers to access financial services is conspicuously absent. While we are fully supportive of the RDR in eliminating bias and raising professional standards in the industry, it may not solve the ever-widening advice gap, and we want the industry to look more innovatively at developing appropriate solutions. We believe there is mileage in this, particularly if advice can be linked to reliable products that consumers can trust.
"Financial services providers need to learn from the experience of the retail sector in better identifying their customer needs and providing cost-effective solutions. We would like to see providers and regulators in financial services working together more effectively to fill the advice gap."