This should speed things up, reduce the risk of gazumping and help ensure there aren’t any nasty surprises late in the day about the condition of a property. Or at least, that’s what the Government is promising.But I have to question whether, in practice, HIPs are the right solution. For while the packs will contain a home condition report (HCR) carried out by independent inspectors, as well as evidence of deeds and local authority searches, one glaring omission will be a valuation.The Government insists the HCR has been developed so lenders will feel confident they have all the information they need to arrive at their own valuations. But like many in the industry, I fear the lenders won’t feel so assured and that buyers will end up paying for on-site inspections themselves.Further, a broker warned me last week that while the HCR is designed to alert buyers to things that might be wrong with a property, inspectors may resort to highlighting problems with “almost everything” – to cover their own backs.If this, as he suggests, puts potential buyers off the property market altogether, we’ll be back at square one.The Government has until the end of this month to provide detailed information on how HIPs will work – including the rules for the packs’ contents and the procedures for making a complaint.Once this information is published, the Council of Mortgage Lenders points out, the industry will be far better placed to judge the Government’s assertion that implementation is on course. But how HIPs will affect the market, we won’t really be able to tell until they’re in force. I just hope that’s not too late.e.shaw independent.co.uk.

What price financial advice? Twelve months after an industry shake-up intended to offer consumers more choice and make it easier to compare costs, the answer remains elusive. Last June saw the launch of “depolarisation” – a name as confusing as the regime it has introduced. Its aim was to transform the way we pay for and receive advice on products ranging from pensions and life insurance to equity individual savings accounts (ISAs).
In the past, consumer choice was “polarised” between tied and independent financial advisers (IFAs), the former selling products from just one company and the latter scanning the whole market.In the new depolarised landscape, another type of adviser has been created, said to be “multi-tied”. He or she is most likely to be a bank salesperson or ex-IFA who has changed his or her way of working to offer products from a small, select panel of providers.In another major change, IFAs can now call themselves “independent” only if they give you a choice between paying for advice in the form of commission or as an upfront fee.

In addition, all advisers must explain their charges and the way they levy fees in two easy-to-understand “disclosure” documents.But one year on, the signs are that this brave new world of consumer choice has failed to enlighten the public and encourage them to take financial advice. Of the estimated 6.6 million people who have seen an adviser in the past year, barely a quarter knew the difference between all three types, according to a survey from the marketing body IFA Promotion.More worryingly, it found that while nearly three-quarters of the consumers surveyed said they believed they had visited an IFA, the likelihood was that they had actually gone to their bank or building society and not realised the difference.The Which? consumer body has repeatedly questioned the logic behind depolarisation. The industry regulator, the Financial Services Authority (FSA), has serious concerns too. A recent “mystery shopping” exercise revealed that more than half of IFAs surveyed failed to give consumers the two disclosure documents as laid down in the rules.And in nearly two-thirds of cases these documents – crucial in helping people understand exactly what they’re paying for – included errors that made price comparison with other IFAs very difficult. More spot-checks are now planned for later this year.Justin Modray of IFA Bestinvest says: “I fear the public are still generally confused by the whole concept of independence, commission and fees.”The fee options offered by some IFAs are simply commission in disguise, which does little to help spread the acceptance of paying fees for independent financial advice.”In any case, the practice of advisers being paid by commission continues to discourage many people from consulting them.

The suspicion remains that an adviser – whether an IFA or multi-tied salesman in a bank – will pick a pension, unit trust or investment bond that pays the most commission, and not necessarily the one that’s right for the customer. The reforms introduced last year have not allayed such fears.Patrick Connolly at independent advisers JS&P says: “The commission system means many advisers are reliant on product providers. The depolarisation regime and the ability of advisers to multi-tie has increased this reliance.”And multi-tied advisers often [sell] at higher rates of commission.”But paying a fee upfront doesn’t appeal to everyone, either, particularly not the less well-off. Fees can start at £70 an hour depending on the complexity of your finances and where you live in the UK.Mr Modray wants the FSA to ban the payment of commission as soon as a product is purchased in favour of annual “trail” commission, which should work to the benefit of the consumer in the longer term.But would this boost demand for IFAs? Depolarisation has not helped to bring financial advice to a wider range of people, and it is simply not profitable for the industry to target the less well off.The Resolution Foundation is a think-tank whose work dovetails with the Treasury Select Committee’s current inquiry into financial exclusion. It estimates that a free telephone-based financial advice service for those on low incomes would cost the Government only around £30m annually.Although visits to IFA Promotion’s own www.unbiased.co.uk website continue to rise, the growth rate has slowed since 2004.When trying to find a financial adviser, always ask about the person’s qualifications; check that they’re registered with the FSA; and make sure you feel comfortable talking with them about what can often be complex subjects. If they can’t explain it to you, it’s their fault – not yours.Anyone seeking guidance from a bank should check what kind of advice is being given, since this can vary between banks and products.