Submitting its report back in December, Sesame accused the FSA's paper of over-complicating the advisory framework, saying that it would create barriers: “Additional tiers of advice – and tiers within tiers – will increase the general perception among Britons that financial services are complex. After all, it must be complex if it requires so many different types of ‘advice.'
"They add to the apparent complexity of the industry from a consumer perspective and offer no significant clarity for consumers; they also risk creating confusion that could substantially undermine consumer confidence.”
Sesame believes the key is to have a much clearer, two-tier distinction between advice and sales.
It said: "The choice facing consumers should be simple: either you buy a financial product, or you seek advice in order to buy a financial product or manage financial wellbeing."
Underlining its position, Sesame argued that an adviser offering advice based on the whole of market should be entitled to describe their advice as ‘independent’.
