Product category:
General insurance
News Release from: Moneysupermarket.com | Subject: Banking
Edited by the Insidemoneytalk Editorial
Team on 29 June 2007
moneysupermarket.com comments on the
FSA's Review of Retail Distribution
paper
Commenting on the FSA's Review of Retail Distribution paper, published today, Nic Cicutti, site editor at moneysupermarket.com, said:
"This radical set of proposals redefines what so-called 'independent' financial advice should mean for millions of consumers "The FSA's proposals offer the potential to completely change how clients relate to their advisers
This article was originally published on Insidemoneytalk on 21 Feb 2007 at 8.00am (UK)
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Consumers would be able for the first time to demand much higher standards of service and overall professionalism in return for the fees they pay advisers, which would have to be agreed on at the outset.
"However, some question marks remain.
First, it is not totally clear whether fees are the only method of payment for independent advisers: the FSA paper hints at the possibility that commissions might be permitted as long as they are 'derived in discussion with the customer'.
Presumably this refers to some form of commission-sharing agreement.
"Second, the paper appears to suggest that only better-off consumers will be able to afford fully-independent advice, while those on middle incomes may no longer receive the same standard of advice as before.
"Finally, the proposals appear to suggest you can be 'independent' even if your advice does not cover the entire product market.
For example, a fee-charging adviser with links to just a handful of companies might be classed as independent.
That cannot be right.
"But overall, the proposals should be supported: at a time when long-term planning is ever more essential to consumers meeting their financial needs, a highly skilled and professional service is integral to achieving this goal.".
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