The public lost trust in advisers after 'decades of mis-selling' the director general of the Association of British Insurers (ABI) has said, explaining why IFAs had been forced to gain more qualifications.
Asked why IFAs had to achieve higher levels of qualifications through the retail distribution review (RDR), Huw Evans said: ‘To help the very rich manage their money.’
He added: 'And because sadly we had decades of problems with mis-selling that have resulted in people wanting to feel confident that the people advising them have significant number of qualifications.'
He added more should be done to allow individuals to make financial decisions of their own.
‘As human beings we are equipped to be able to take decisions, we take them all the time, we understand trade-offs and we can make judgements,’ he said.
‘We need to give people more ability to take judgements for themselves and if we take all the decisions away from people they will take the steps away from the engagement they need.'