Lack of adviser voice 'scary'

Mike, what’s your take on the make-up of the working group that has been set up to set out the new rules for financial advisers?

I think it’s very strong in some areas but I think there are a couple of glaring weaknesses in there. There’s two aspects; one is that the new working group is looking at the application of the existing code to all people providing regulated retail/financial advice. It’s encompassing a much wider spectrum than the old one.

It’s discovering mortgages, insurance, as well as the investment side.

Exactly, yes. Whereas the old code was really just around regulating Authorised Financial Advisers. Conceptually, I think it’s a great idea, so I’m all for it. I certainly think it’s needed, but when you look at the terms of reference for the working group, some of the key things in there try to differentiate between the different types of advice. What’s advice? What’s product? What’s service? The biggest problem there is that the working group committee members really don’t reflect the skill set that’s required to deal with some of those issues.