Sesame Bankhall Group chief executive George Higginson says some advisers are selling their advice too cheaply and will be forced to increase their fees to cover their costs after the retail distribution review.
At the Sesame symposium in London last week, he said: “There are too many people who think good advice means selling it cheaply. I do not believe that. You have to get to the stage where you value your advice.
“Advisers are going to have to raise fees to cover their costs but it will take a bit of time because consumers have had this expectation of free advice for years.”
SBG executive chairman Ivan Martin said he is disappointed the FSA chose not adopt the Treasury select committee’s recommendation to delay the RDR by a year to January 1, 2014.
Martin said: “We backed the select committee’s recommendation for a 12-month delay, which we believe would help more advisers to get across the RDR finishing line. Our reasoning is simple, we believe it would reduce the advice gap by enab-ling up to 500,000 people to continue to receive valuable guidance from their advisers.
Martin added Sesame still feels there should be a statutory objective to encourage people to save and said it will continue to lobby for a long-stop on complaints and regulatory dividends.