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Watchdog in IFAs fees move
Nick Goodway25.11.08
Paying commissions to financial advisers could be a thing of the past if City watchdog, the Financial Services Authority, gets its way.
The regulator today said it wants to make independent financial advisers declare their fees up front when dealing with members of the public.
That should ensure that they are not biased in favour of insurance companies or savings firms which pay them large commissions.
The FSA said, as part of its latest review of the retail investment market, that it wants consumers to also be given the choice of paying fees upfront or adding it to the cost of the product they are buying.
"This is the end of commission as we know it," said the FSA's Amanda Bowe. She said IFAs will have to come up with itemised quotes including their own fees and costs when they are selling retail products .
The plans are not likely to come into force until the end of 2012.
