Independent Financial Advisers
Debate between Harriett Baldwin and Andrew Bingham(13 years, 6 months ago)
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Harriett Baldwin
I thank my hon. Friend for that helpful suggestion.
I would also like to ask the Minister how changing from commissions, which are currently exempt from VAT, to advice, which will attract VAT, will not add a further cost for consumers.
Andrew Bingham (High Peak) (Con)
On the subject of commissions, the IFAs in High Peak who have spoken to me are concerned that removing the option of commission and replacing it with up-front charges will prevent people from getting the independent financial advice they need. Conversely it will prevent IFAs from taking the exams, because of the downturn in work. That means many people will not get the independent financial advice they will need.
Harriett Baldwin
Yes, that is a question to be considered as well.
Does the Minister really believe that consumers should not be allowed to choose whether they pay explicitly for advice or whether they pay through commission? Does he believe that it is consistent with UK legislation retrospectively to change the qualification regime for a whole class of practitioners? Finally, does he agree with one commentator, who described the RDR as
“a sledgehammer to miss a nut”?