Ian C. Lucas
Main Page: Ian C. Lucas (Labour - Wrexham)Department Debates - View all Ian C. Lucas's debates with the HM Treasury
Independent Financial Advisers
Ian C. Lucas Excerpts(13 years, 7 months ago)
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Harriett Baldwin
Yes. I thank my hon. Friend for that suggestion and I would be delighted to support it.
IFAs are regulated by the soon-to-be-abolished Financial Services Authority, the independent statutory regulator set up by the previous Government. Banking supervision is to return to the Bank of England, while many other regulatory functions will go to a new consumer protection body. Thus, this seems an opportune time for the House to debate some of the implications of those policies and some of the functions involved.
Fewer people are benefiting from defined-benefit pension schemes. More individuals are being asked to contact an IFA to obtain advice. Many will receive lump sums from an inheritance or perhaps a redundancy payout, and they will need professional advice to make the most of them. With auto-enrolment beginning in a few years’ time, people will also have to decide whether they need to opt out. Many younger people will leave university with student loans. Many older people will need to buy annuities or to make arrangements to pay for long-term care. All those transactions require some financial advice.
Ian Lucas (Wrexham) (Lab)
I previously worked as a solicitor and employed an independent financial adviser. Does the hon. Lady agree that it is better to receive advice from an independent financial adviser than a tied agent?
Harriett Baldwin
There are indeed advantages, and I thank the hon. Gentleman for his helpful intervention. He obviously has a lot of experience of dealing with the sector.
It is estimated that there are about 45,000 IFAs in the country, many of whom are sole traders.