FSA announces new adviser charging rules

29 March 2010 at 17:00

FSA announces new adviser charging rules New rules have been published by the Financial Services Authority (FSA) to remove commission bias from advice on retail investment products.

Those with FSA authorisation will want to make a note of the new regulation, after the regulator said that it expects the changes will restore consumer confidence in the market.

From the end of 2012, companies will need to be "upfront" on how much their services cost and should not hide how much they will charge for advice behind the price of a product, the FSA said.

"Today's new rules are designed to boost confidence and trust in the retail investment market by removing commission bias, actual or perceived, and exploding the myth that investment advice is free," explained Sheila Nicoll, FSA director of conduct policy.

Earlier this month, the FSA fined Charles Palmer, director of Gloucestershire-based Financial Ltd for management failings that led to customers being placed at risk of receiving poor pension switching advice. ADNFCR-3006-ID-19694215-ADNFCR

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