Tracey McDermott said Financial planning fails to “set most people's pulses racing”. Read full story here.
Ms McDermott who has been acting chief executive but will leave in June, made the comments as she outlined what the difficulties facing the sector in addressing the advice gap.
Keith Churchouse CFPTM Chartered FCSI, owner of Chapters Financial in Surrey, told Financial Planning Today: “I think that her view is probably a little outdated and by that I mean the high quality Financial Planning industry has moved forward dramatically over the last 2 years. I don't think it's insulting but it’s not very helpful, it tries to put fuel on a fire that has already gone out.
“If it was three years ago or more it might be fair but Financial Planning firms have moved forward from a time of distrust.
“Financial Planning is becoming more important and more dynamic, especially with more looking at moving online. I’m not sure I’ve ever known the Financial Planning market to be as dynamic for over 30 years.”
Chris Daems Dip PFS, director, Cervello Financial Planning, said: “I think Tracey raises an important issue. Those who understand the benefits of Financial Planning and are happy to pay for the service do remain in the minority and it could be argued that it's not something which people jump out of bed to do.
“However instead of constantly talking about the negatives and feeling the need to highlight where financial services companies are distrusted why don't we talk more about the great work Financial Planners do across the country?”
Mr Churchouse set up his own robo-adviser firm called SaidSo last year.
In this area, he is pleased with the recommendations from the FAMR and the FCA’s willingness to help firms trial more automated services with initiatives like the Innovation Hub and the forthcoming regulatory sandbox.
Mr Churchouse said: “That part I do think they’re moving in the right direction, whether it’s the FCA or Treasury pushing them that way.”
Ms McDermott said there was no silver bullet for making advice accessible across the wealth spectrum.
But she said that robo-advice had “the potential to be an extremely effective way of providing more affordable and engaging advice for many consumers”.