The Securities and Investment Institute, a UK professional body for the retail investment management sector, has responded positively to the Financial Services Authority’s Retail Distribution Review discussion paper, saying there are already many examples of good practice in the industry which the FSA can adopt.

Ruth Martin, managing director of SII, said: “Private client stockbrokers, private banks and wealth managers are seeing significant growth in client numbers and assets under management because firms in this industry seek a long term relationship with their clients and place great emphasis on building and establishing trust. Their charging structure is generally on a transparent and agreed fee basis rather than by an undeclared and opaque commission structure.”

Simon Culhane, chief executive of SII, said: “FSA wants a universal solution across the industry and we support the central aim in ensuring that whether a consumer visits an IFA, a bancassurer or a private client investment manager, the customer has access to a service that is appropriate to the individual’s needs and delivered efficiently, with transparency of pricing, by a practitioner who adheres to high standards of integrity and ethics.”

The SII agrees that in order to raise the quality of service in the retail sector a practising certificate could be introduced which would involve the individual, the professional body and the firm. This would provide consumers with the reassurance that the individual possessed the necessary skills, knowledge and expertise and would act in accordance with an ethical code.