Business News |
|
FSA targets commission-based sales
Under the final rules of the Retail Distribution Review (RDR), which come
into force on 1st January 2013, financial advisers will be paid by fees
agreed between them and their clients rather than commission from product
providers.
The fees charged will be based on the services provided to the client, not
the product or provider being recommended. In addition, the fees should not
vary significantly according to the product or provider.
Transparency is also a key point, with firms needing to be upfront about the
amount charged and what the client is receiving for their money.
Firms offering independent advice will also need to demonstrate that a
product was chosen to suit their clients' unique needs, and that the product
was recommended after a comprehensive and unbiased analysis of the market.
If an adviser offers a limited range of products, this restriction will need
to be clearly explained from the outset.
