Is the FSA considering RDR decency tests?

27 April 2010 at 16:37

Is the FSA considering RDR decency tests? The Financial Services Authority (FSA) is considering a new 'decency test', according to the latest reports.

A source told Money Marketing that the regulator is contemplating enforcing an industry-wide sum for advice and consultancy which would stand at approximately three per cent initial and 0.5 per cent ongoing.

The source said: "In the FSA the figures of three per cent initial and 0.5 per cent are what are being talked about as non-contentious. In practice there is not a lot of change [from commission]."

However, Alasdair Buchanan, group head of communications at Scottish Life, said that he thinks it is likely that the FSA will leave it to market forces to set the level of remuneration advisers take.

It follows the FSA's publication of a consultation paper which revealed that under new proposed Handbook changes, it may allow the Financial Services Compensation Scheme to recoup its management costs if it is unable to do so in the relevant compensation scheme. ADNFCR-3006-ID-19744833-ADNFCR

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