Financial changes will do us all good, says Kent expert
A major overhaul of the financial advice industry will ensure
investors and businesses have access to clearly costed and expert
advice, according to independent financial advisors Brunning Newman
The reforms outlined by the Financial Services Authority include
scrapping commission-based payments for investment and pension
advice from New Year's Day, 2013, with all advice paid for by
There is also a higher mandatory minimum professional
qualification standard - and these changes have seen many
financial advisors leave the profession, with more expected to
Several high street banks and building societies have chosen not
Barclays has closed its financial planning arm, while RBS and
HSBC have announced 1,000 redundancies between them.
The minimum qualification will be raised from O-Level or GCSE to
David Brunning, managing director of BNH based in Tunbridge
Wells, said: "The FSA's reforms will lead to an increase in the
knowledge and professionalism of advisers and product providers,
making the cost of advice clear and the businesses involved in
financial advice more robust.
"The changes laid out in the Retail Distribution Reform will
make what has often been seen as a complex process with hidden
costs suddenly more easily accessible and transparent – a move
which will undoubtedly help anyone in need of financial advice,
from private investors to business leaders.
"The FSA is now championing what we at BNH have always believed
in: providing truly independent, expert financial advice and
support with a clear set of costs. We are extremely well-placed to
continue this practice in the coming years."
For more information, visit www.bnhl.co.uk.