Misys plc - which is the largest supplier of support services to Independent Financial Advisers ('IFAs') - today submitted its response to the Financial Services Authority's CP121 consultative document "Reforming Polarisation" and came out strongly in support of independent financial advice. The response includes the following key messages :

Definition of "Independent"We disagree strongly with the suggestion that remuneration by commission is incompatible with independence. To be independent, an adviser needs access to products from providers across the market and needs to be impartial in selecting products and providers. The method of remuneration results simply from the exercise of client choice.

Availability of Independent AdviceConsumers' interests are best served by encouraging and improving access to independent advice. The proposals would achieve quite the opposite in restricting the availability of independent advice and denying the customer of the IFA the right to choose the preferred method of remuneration.

Defined Payment SystemThe concepts of commission and fees are simple, straightforward and understood clearly by consumers. Whilst individual advisers may well wish to operate such a system of remuneration, we believe that an attempt to define a certain category of adviser by exclusive use of such a system will be fraught with difficulty and open to abuse.

Overall, Misys aims to secure long-term improvements in access to and the quality of financial advice for consumers. Misys believes there should be greater openness and transparency in the delivery of medium and long-term financial products to all.

Ivan Martin, Chief Executive of the Misys Financial Services Division, states: "One of the great features of the system of remuneration by commission is that quality independent advice is available to, and accessible by, those who could not otherwise afford to pay for it. We find it ironic that a Consultation Paper aimed at widening consumer choice, and improving access to quality advice, should propose to completely remove customer choice over remuneration and deny access to independent advice to all but the privileged few."

Since the CP121 consultative paper "Reforming Polarisation" was first published in January, Misys has taken extensive steps before drafting its response - including carrying out widespread research with over 600 members, planning detailed focus group sessions with members and non-members, working closely with the industry trade body AIFA, and setting up a special CP121 team led by Nick Ansell, Chief Executive of the DBS network.

Separately, Ivan Martin added: "The highest priority is that a robust and substantial IFA sector is maintained."

Misys supplies compliance and research services to 7,500 IFAs in five networks - Countrywide, DBS, Financial Options, IFA Network and Kestrel. Over the next month, Misys will be outlining the details of its response to all of its members through roadshows and private meetings.