The Association proffered that an ‘assisted purchase’ distribution category for financial products, operating on a non-advised basis, could help guide customers towards an appropriate solution for specific financial needs, or refer them onwards for further information.
It said that when operating together with enhanced advice services, it would enable the industry to deliver more effective solutions for consumers with more easily-understood services and charges.
BBA chief executive Angela Knight said that these changes would give the banking industry "an opportunity to shape its own destiny".
However she said that addressing weaknesses in this way would only be effective if the full support of the Financial Services Authoriy (FSA) and the Financial Ombudsman Service (FOS) was given.
“There is a strong consensus among our members that assisted purchase has real potential to reach out to consumers and deliver savings, investment and protection solutions which are cost effective and fair," said Knight.
“More clearly segmented regulated advice services, underpinned by higher professional standards, would give those consumers seeking financial advice greater clarity and confidence on the services available.
"We and our members will continue to play our part in working towards solutions which can deliver effective reform for the benefit of consumers and industry alike.”
The BBA also told the FSA that any reforms of the existing financial services market should be underpinned by a move towards greater professionalism and an enhanced role for the professional bodies in raising industry standards.
Qualifying examinations should be rationalised under a standard framework and a requirement placed on regulated advisers to be members of a professional body.
On top of this, whilst the BBA supports the principles behind Customer Agreed Remuneration (CAR), it is concerned at how effective it would be in practice.
CAR is just one method of managing conflicts of interest relating to incentives: the recent MiFID-induced revisions to the FSA Handbook on incentives, suitability and conflicts of interest should be allowed to bed in and the industry should meet its obligations on remuneration bias using a principles-based approach.
