Steve Gazzard CFPCM, chief executive of the IFP
A scathing report about the failure of advisory firms to provide correct cost information to customers highlights the importance of a genuine Financial Planning service, the IFP says.
The FCA report, which examined the clarity of charges and fees in the wake of RDR, may lead to two firms being referred to its Enforcement and Financial Crime Division.
It found 73% had failed to be clear enough with consumers.
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Steve Gazzard CFPCM, chief executive of the IFP, said: "Firms need to deliver the right service at the right price and communicating the cost effectively to their clients is essential. "By engaging a CFPCM professional or an Accredited Financial Planning FirmTM consumers can have confidence that as per the very first point in the IFP's Code of Ethics, clients' interests really do come first.
"One of the many criteria we use when assessing Accredited Financial Planning FirmsTM is to check that not only is there a clear and consistent fee strategy in place but also that it is being communicated effectively to clients."
Sam Rees-Adams, professional standards director at the IFP, said: "Consumer trust is not something that can be taken for granted; it must be earned.
"All consumers should have access to professionals who listen to what they want, focus on the desired outcomes and are transparent about costs.
"The real value is in the Financial Planning process. When this is delivered properly it gives a client a plan for life. Our members' experiences have shown that clients appreciate that this is a service which is well worth paying for."
